CHAPTER – I

EFFCTIVE ADVERTISNG

INTRODUCTION:

The software revolution typically represents the country’s post 1991 economic transformation-from a hesitant beginning to explosive growth. Today there are over 270 million software subscribers. This mobile telephony led revolution is spreading to every corner of the country and over eight million mobile subscribers’ signup for every month. Over the last decade, not only has India emerged as the fastest growing mobile market but also as one of the largest in terms of customers

STATEMENT OF THE PROBLEM:

1.1. Fundamentals of Marketing

The development of marketing is evolutionary rather than revolutionary. There is no single answer to the question of what is marketing? To understand it may be explained in brief, as “Marketing is what a maker does.” But this meaning lacks clarity in understanding the subject. The evolution of marketing is as old as the Himalayas. It is one of the oldest professions of the world. Marketing is indeed an ancient art; it has been practiced in one form or the other since the days of Adam & else. The word, marketing has been defined differently by authorizes in different ways the traditional objective of marketing had been to make the goods available at places where they are needed. This idea was later on changed by shifting the emphasis from “exchange” to “satisfaction of human wants.” different authors tried to suitable definition from their view point. Some are very broad, others are rather too narrow. Some emphasis on the traditional view of purchasing goods and finding out customers, others emphasis on the modern view that marketing must first find out what customer want and then plan a product to satisfy that want. As any other subjective has its own origin, growth and development.

1.2. Definition of marketing

Marketing has often been described as, “the art of selling products,” but people are surprised when they here that the most important of marketing is not selling. Selling is only the tip of the marketing icebery.

The American marketing Association offers the following definition marketing is the process of planning and executing the conception, pricing promotion, and distribution of ideas, goods & service to create exchanges that satisfy individual and organization goals.

1.3. Evolution of marketing: 1. Barter system: The goods are exchanged against goods, without any other medium of exchange, like money. 2. Production orientation: This was a stage where producer, instead of being concerned with the customer preferences, concentrated on the mass production of goods for the purpose of profit. They cared very little about the customers. 3. Sales orientation: The stage witnessed major changes in all the spheres of economic life they selling activity becomes the dominant factor, without any efforts for the Satisfaction of the consumer needs. 4. Marketing orientation: Customers Importance was relished but only as a means of disposing of goods produced. Competition became stiffer. Aggressive, advertising, personal selling, large scale sales promotion etc. are used as tools to boost sales. 5. Consumer orientation: Under this stage only such products are brought forward to the markets which are capable of satisfying the tastes, preferences and expectation of the consumers-consumer satisfaction. 6. Management orientation: The marketing function assumes a managerial vole to co-ordinate all interacting business activities with the objective of planning, promoting and distributing want- satisfying products and services to the present and potential customers.

SCOPE OF THE STUDY:

I. To find out the socio-economic background of mobile users in CHENNAI Software Industry II. To measure the effectiveness of cherry tech’s “Mega Super Plan” prints advertisement.

IMPORTANCE OF THE STUDY:

Marketing mix is the policy adopted by the manufactures to get success in the field of marketing. Those days, when goods were matched with the market, have gone. The modern, market concept emphasizes the importance of the consumer’s preference. Manufactures take various policies to get success in the market and the marketing mix is one of the important policies. In planning, we make use of marketing information to access the situation. Therefore; a manufacture first analyses the nature of consumer’s needs and then plan his product to give satisfaction to the consumers.

Marketing departments perform the operation and the market offering mix the result. Thus, the identification of demand and supply involves various functions of marketing to attain success in the market and the combination of these functions is known as marketing mix.

According to Borden, “The marketing mix refers to the appointment of efforts, the combination, the designing and the integration of the elements of marketing into a programmer or mix which, on the basis of an appraisal of the market forces will best achieve an enterprise at given time.”

According to station, “marketing mix is the term used to describe the combination of the four inputs which constitute the core of a company’s marketing system-the product, the price structure, the promotional and the distribution system.

Marketing mix is developed to satisfy the anticipated needs of the identified markets. A description of the four elements marketing mix (Four PS) is:

1. Product

2. Place (Distribution)

3. Price

4. Promotion 1. Product:

The products must satisfy consumer needs. The management must, first decide the produced, by knowing the needs of the consumers the physical product services, brand and packages. The marketing authority has to decide the quality, type of goods or services which are offered for sale. A firm may offer a single product (manufacturer) or several products (seller)- Not only the production of right goods but also their shape, design, style, brand, package etc. are of importance. The marketing authority has to take a number of decisions as to product additions, product deletions, product modifications, on the basis of the marketing information.

2. Place (Distribution):

Physical distribution is the delivery of products at the right time and at the rights place. The distribution mix is the combination of decisions relating to marketing channels, storage facility, inventory control, location, transportation where housing etc.

3. Price:

The price is to the effect the volume of sales is the price. The marked or announced amount of money asked from a buyer is known as basic price- value placed on a product. Basic price alterations may be made by the manufacturer in order to attract the buyers. This may be in the form of discount; allowances etc., Apart from this, the terms of credit, liberal dealings will also boost sales. 4.Promotion:

The product may be made known to the consumers. Firms must undertake promotion work –advertising, publicity, personal selling, etc., which are the major activities and thus public may be informed of the products, by the manufacturer to the public.

OBJECTIVES OF THE STUDY: The advertising has its origin from a Latin word ‘Advertise’ which means ‘turns on’. The dictionary meaning of the word is ‘to announce publicly or to give ‘public notice’. In the early days of advertising, people used to advertise simply to announce the availability of goods and services .It was in 1904 that John E. Kennedy dramatically changed the description of advertising to ‘salesmanship to print’. For the first time, it was clearly stated that the ultimate win of advertising is to sell.” It is not good advertising unless it sells”. It was emphasized that advertising did not just denote thinking up with Every advertiser pays the pictures or writing clear slogans, nor was the purpose of advertising to entertain. It was considered to be a serious business tool with the purpose of assisting the sales of a product.

Same tariff for a magazine or TV time. Yet a really good message can sell many times over a poor one. As an advertising professional one is expected to produce high return on investment, readership, action and sales. According to John E. Kennedy: Advertising is simply a way of selling something in the most effective method possible. Good advertising creates sales and just attention”.

“According to American Marketing Association: “Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identifiable sponsor. ”

Characteristics of Advertising: Advertising is a promotional tool, which is non-personal and is paid for by the sponsor who is easy to be identified, whose aims is to disseminate detailed information about the product to the target audience. At this point, it is important to go into the details of what are the various characteristics of advertising.

(i) Paid form Advertising is a tool of promotion, which is paid for by the advertiser. There are standard tariff rates for the different types of media where the advertiser chooses to place an advertisement. Money is paid for per second in radio and TV or per column centimeter (cc) in print media by the advertiser. (ii) Non-personal presentation: Advertising is addressed to mass –audience. A salesman does face-to- face selling which is personal selling. On the other hand, advertising do not personal. It is neither delivered by any person nor is it addressed to any specific person. There is a facilitating agency i.e. ., media, which is used to carry he idea through the various vehicles to the target audience, which are very large in number. (iii) Promotion: The aim of advertising is to persuade people to buy products and services or to accept idea which are being advertised. The task of promoting these products and services is done through communicating to the target audience by using the right media vehicle.

(iv) Identifiable sponsor: The sponsor is the person or group which is playing for the advertisement. In case of advertisement It can be easily identified as to what is the source of advertising message. Even if the advertiser’s name is not very clearly specified it is not difficult to identify the sponsor of that advertisement.

(v) Creative An advertisement should be creative. Without it, the reader or viewer may not notice the message. But creatively for its own sake is insufficient .It should be used to present the ideas in an imaginative and dramatic way, showing how a product or service fulfills a consumer’s needs. The most creative advertisement is the one ultimately proves itself in the market. Thus one of the most important features of advertising is “Creatively that sells”. Can you think of any advertisement, which was highly creative, but people failed to remember the product being advertised. Name a recent advertisement that you feel is creative. (vi) Investment some people consider advertisement as a wasteful expenditure having a short term effect. They believe that advertisement budgets are changes to the customers by raising the price. However, advertisement is an advertisement towards the building of goodwill and brand image in the market. It should be sustained over a period of time or else its message will be forgotten. (vii) No direct relation –Advertisement budget and increase in sales

On the features of advertisement is that it stands alone for promotion. It does not guarantee increase in the sales volume. There is no scale to measure the relationship between how much of money to spend to increase some amount of sales. Money must be spent effectively, whatever be the budget. If spent well, a small advertising expenditure can have a lot of impact.

1.6. ADVERTISING VS. PUBLICITY

Often the two terms advertising and publicity are used interchangeably while talking in day life. Very often we say. “NIIT is doing a lot of publicity these days”., Escorts have changed the way they publicise their products ”. Etc. In effect, we mean to refer to the advertisement spend or the campaigns of these two organizations. Therefore, it becomes important for us to differentiate between the two terms.

Advertisement is a form of one- sided persuasive communication from the advertiser to the target audience. Present his idea, goods and services in a persuasive method to millions of actual or potential buyers in a very shorter duration of time.

i. As an art

Development of advertising idea is an art because it is the creativity of individuals, working in a group which makes an advertisement noticeable and attractive. The creation of the copy including its message, theme and its layout is an art on which the success and failure of an advertisement in an imaginative way, unique demonstration of product superiority or a memorable jingle is all about creativity which is an art.

ii .As a science

The other side of the coin projects advertising as a science. Advertising management has been developed as a discipline which is being taught to the students in various universities and institutions, at both undergraduate and postgraduate levels. Various principles, objectives, techniques and stratigies of advertising have been developed to guide professionals develop a successful and effective advertising campaign. iii. As a profession Advertising field offers numerous career opportunities. Advertising agencies have various departments such as client servicing, copy writing, media buyers, researchers, etc., where specialists are required to handle various positions. Advertisement itself has emerged as an important field of career opportunities

METHODOLOGY

4.1. RESEARCH DESIGN:

The study is descriptive in nature, as it attempts to study the effectiveness of cherry tech software development Scheme. 4.2. Sample Design:

Population:

The study is concerned with the advertising effectiveness towards cherry tech software development Scheme in Chennai Software Industry. Hence the residents of Chennai are considered as the population.

4.3. Sample Frame:

The primary data have been collected from the residents of Chennai from the following areas:

 Kalanivasal

 Sekkalai

 Subramaniapuram

 Senjai

4.4. Sampling Unit:

The primary data have been collected only from those people who satisfy the following conditions:

 The respondent should be a Chennai resident

 The respondent should have a mobile handset. 4.5. Sample Size and the Sampling Technique:

Method used: z - test

Propitiation method – population size unknown

Sample size Determination

Pilot study: Advertisement Effectiveness

Advertisement No. of Respondents Percentage (%) effectiveness

Yes 9 90%

No 1 10%

Total 10 100

n = sample size

P = probability of advertisement effectiveness = 90%

q = probability of advertisement in effectiveness = 10%

(1-p)

Z = (table value) = 1.96

E = Level of significant = 5% or 0.05

(or)

Level of confidence = 95% (n) Required sample size

n = (p)(q) [z/e]2

= (90)(10) [1.96/5]2

= 900 [0.1536]

= 138.2

Though the calculated sample size is 138, for convenience sake the sample size is taken as 140. The researcher has made a sample study, by covering respondents from different areas of the Chennai town.

The respondents are randomly selected by following Stratified Random Sampling technique, which is one of the probability sampling techniques. Following basis is adopted while collecting data from the 140 sample respondents.

Table – 2.1

SELECTION OF SAMPLE RESPONDENTS BY USING STRATIFIED RANDOM SAMPLING TECHNIQUE

No. of Stratification Variable Respondents. AREA:

1. Sekkalai 34 34 2. Subramaiapuram 35 3. Kalanivasal 35

4. Senjai

Total Sample Size (n) 140

4.6. Data Collection:

The study involves collection of both primary and secondary data. The researcher has used the Interview Schedule to collect the primary data directly from the sample respondents. The Interview Schedule is framed in such a manner so that it covers all the details required for the study. An unstructured personal interview was conducted with the officials of cherry tech branch at Chennai to collect secondary data. Various magazines, newspapers, websites were also used to elicit secondary data.

4.7. Data Processing:

The data were processed through a master table. With the help of master table, univariate and bivariate data tables were constructed.

4.8. Frame Work for Data Analysis:

 Percentage analysis is widely used in this study. Statistical tools such as Arithmetic Mean and Weighted Average have also been used.  To study the extent of motivating power of the advertisement, 5-Point Scale has been used.

 Test statistics such as Z-test have been used to test the hypotheses.

 Pie charts and Bar chart have also been presented for easy understanding.

4.9. SCOPE AND LIMITATIONS OF THE STUDY:

The study on ‘Advertising Effectiveness of Prepaid S, Chennai Software Industries’. is confined to Chennai town only. Further studies can be extended on other geographies for the better understanding of the advertising effectiveness of cherry tech prepaid scheme.

The study on ‘Advertising Effectiveness of Prepaid Scheme in Barat Sanchar Nigam Limited, CHENNAI Software Industries’’. is confined to Chennai town only. Hence the results of the study may not be generalized and are not universally applicable.

LIMITATION OF THE STUDY:

 One of the important of the study was lack of time. Though the respondent to the study was vast due to the time constraints the sample size was limited.

 The researcher has difficulty with most of the respondents who was not willing to cooperate with the study, as they were very busy with their work.  The research had also difficulty in getting some information, which the respondents were not interested to give.

 The researcher had difficulty with the respondents because they did not fill up the questionnaire in proper time.

 Another limitation of the study was confined with not only retailers but also consumers for survey of this study.

CHAPTER – II

REVIEW OF LITERATUR E

Market Response Approach of Advertising Effectiveness The market response method of advertising effectiveness research assesses the impact of advertising in terms of the relationship between advertising expenditures and sales for the respective advertising brand during a particular period. However, advertising studies in market response analysis have resulted in conflicting findings. For instance, Telser (1962 cited in Kocabiyikoğlu, 2004) utilized the time series data for three different cigarette brands. Simultaneous equation models were used to explore the relationship between advertising and sales. The study found that different cigarette brands earn different return on advertising spending. Furthermore, Telser (1962) states that other marketing variables such as economic conditions and the level of competition in the Creative Advertising and its Effectiveness 27 market also influence the advertising-sales relationship (Kocabiyikoğlu, 2004). While studying the relationship between advertising and sales, Quandt (1964) also argued that other variables like disposable income, education etc. should be considered as these factors affect the advertising-sales relationship. Murphy and Cunningham (1993) state that linking advertising with sales impact is not appropriate as other marketing variables such as economic factors, market factors, etc., affect the company sale. In fact, previous research investigating the real effectiveness of advertising has not found a clear link between advertising and its effect on company sale (Vakratsas and Ambler 1999). Neslin (2002) found that other variables like sales promotion can have a significant influence on the advertising and sales relationship and consider such variables responsible for inconsistent results in previous studies on the effectiveness of advertisements. On the other hand, advertising researchers, exploring the psychological and behavioral impact of advertising, concentrate on the psychological factors such as recall, attitude towards the advertisement and brand, and purchase interest for the advertised brands (Jeong, 2004). According to this method, consumers are shown advertisements and then their responses on how they perceive the advertisements are tapped. Furthermore, responses about their future behavior regarding the advertised brands are also recorded. Based on such responses from viewers, inferences are then made about the overall success or failure of the respective advertising campaign (Barban, Dunm, Krugman & Reid, 1990; Kover, Goldberg & James, 1995; Till & Baack, 2005). The behavioral perspective of advertising effectiveness provides insight into the antecedents of consumer behavior like attitude, recall and brand choice. It, therefore, supersedes in importance than the market and sales response method of advertising Creative Advertising and its Effectiveness 28 effectiveness. This is also more important as it is more consistent with the marketing concept which focuses on the final consumer as a fundamental business philosophy (Ang, Lee & Leong, 2007). Consistent with such views, Lucas and Britt (1963 cited in Kocabiyikoğlu, 2004) stated quite earlier that the basic purpose of advertising is to provide information about the actual receivers of advertisements that are instrumental in the selection of appropriate advertising strategies. This ultimately improves the effectiveness of advertisement and hence will positively affect the market result. 2.3.2 Behavioral Perspective of Advertising Effectiveness The behavioral perspective of advertising effectiveness concerns how people perceive, process, respond to, and use advertising information in making purchase decision about certain product or service (Jeong, 2004). As human psychology is complex, researchers have used various measures of advertising effectiveness. These include association among recall, recognition and attractiveness of advertisement (e.g., Wells, Burnett & Moriarty, 2003), effects of attention on memory (e.g., Rajaram, Srinivast & Travers, 2001), likeability as a measure of advertising effectiveness (Leather, McKechnie & Amirkhanian, 1994), recall, attitude towards the advertisement and brand (Ang & Low, 2000; Kover et al.,1995; Higie & Sewal, 1991). However, the behavioral perspective of advertising effectiveness in general focuses on recall or and persuasion (Till & Baack, 2005). There are many reasons why these two types of measures are consistently used as a useful criterion for evaluating advertising effectiveness: First, viewers’ recall of the advertising information shows that the advertisement has been well attended to and the advertising information has got a place in consumers’ minds which increases the Creative Advertising and its Effectiveness 29 likelihood of the advertised brand to become member of consumers’ evoked set (Stewart, 1989). Evoked set represents the number of brands in the priority list of a consumer while considering purchase of goods and services (Loudon & Della Bitta, 2002). Recall is also of particular interest because an advertisement must first command attention before it can persuade. Hence, researchers have consistently used recall as a measure of advertising effectiveness (Till & Baack, 2005; Finn, 1992; Wells et al., 2003). Similarly, attitude as another measure of advertising effectiveness is important because it is related to how consumers evaluate the advertised products. A strong positive attitude towards a product means that the person may buy the brand in future (Wells et al., 2003). As Mitchell and Olson (1981) state that as attitudes are relatively stable and enduring predispositions to behave, they should be useful predictors of consumers’ behavior towards a product or service. Gresham and Shimp (1985) consider attitude as an attempt to influence consumers’ choice. Hence, it implies that attitude has got a central place in consumer’s brand choice. Attitudes are also important because they reflect the likes and dislikes of consumers (Wells et al., 2003). The importance of attitude can also be mainly understood from the empirical findings of studies stating that consumers’ attitude towards advertisements affects their subsequent evaluation of the advertised brands and hence their choice of the respective brands (Mitchell & Olson, 1981). The above discussion reveals that both recall and attitude are the important measures of advertising effectiveness. Literature on the effectiveness of creative advertising also indicates that previous studies have used these measures as the common dimensions of advertising effectiveness. Since this study also covers the effects of creative advertising on consumers’ advertisement and brand-related attitude as well as Creative Advertising and its Effectiveness 30 their recall and purchase intention for the advertised brands, each of these measures is discussed in the next section in detail.

CHAPTER III

INDUSTRY PROFILE

Software industry

The software industry includes businesses for development, maintenance and publication of software that are using different business models, mainly either "license/maintenance based" (on-premises) or "Cloud based" (such as SaaS, PaaS, IaaS, MaaS, AaaS, etc.). The industry also includes software services, such as training, documentation, and consulting.

History The word "software" was coined as a prank as early as 1953, but did not appear in print until the 1960s. Before this time, computers were programmed either by customers, or the few commercial computer vendors of the time, such as UNIVAC and IBM. The first company founded to provide software products and services was Computer Usage Company in 1955.

The software industry expanded in the early 1960s, almost immediately after computers were first sold in mass-produced quantities. Universities, government, and business customers created a demand for software. Many of these programs were written in-house by full-time staff programmers. Some were distributed freely between users of a particular machine for no charge. Others were done on a commercial basis, and other firms such as Computer Sciences Corporation (founded in 1959) started to grow. The computer/hardware makers started bundling operating systems, systems software and programming environments with their machines.

When Digital Equipment Corporation (DEC) brought a relatively low-priced microcomputer to market, it brought computing within the reach of many more companies and universities worldwide, and it spawned great innovation in terms of new, powerful programming languages and methodologies. New software was built for microcomputers, so other manufacturers including IBM, followed DEC's example quickly, resulting in the IBM AS/400 amongst others.

The industry expanded greatly with the rise of the personal computer ("PC") in the mid-1970s, which brought desktop computing to the office worker for the first time. In the following years, it also created a growing market for games, applications, and utilities. DOS, Microsoft's first operating system product, was the dominant operating system at the time.

In the early years of the 21st century, another successful business model has arisen for hosted software, called software-as-a-service, or SaaS; this was at least the third time citation this model had been attempted. From the point of view of producers of some proprietary software, SaaS reduces the concerns about unauthorized copying, since it can only be accessed through the Web, and by definition no client software is loaded onto the end user's PC. Size of the industry According to industry analyst Gartner, the size of the worldwide software industry in 2013 was US$407.3 billion, an increase of 4.8% over 2012. As in past years, the largest four software vendors were Microsoft, Oracle Corporation, IBM, and SAP respectively.

Mergers and acquisitions The software industry has been subject to a high degree of consolidation over the past couple of decades. From 1988 to 2010, 41,136citation needed mergers and acquisitions have been announced with a total known value of US$1,451 billion ($1.45 trillion). The highest number and value of deals was set in 2000 during the high times of the dot-com bubble with 6,757 transactions valued at $447 billion. In 2010, 1,628 deals were announced valued at $49 billion.

Business models within the software industry Business models of software companies have been widely discussed. Network effects in software ecosystems, networks of companies, and their customers are an important element in the strategy of software companies.

Information technology in India Information technology in India is an industry consisting of two major components: IT Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, the sector aggregated revenues of US$100 billion in 2012, where export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%. Information technology is playing an important role in India today & has transformed India's image from a slow moving bureaucratic economy to a land of innovative entrepreneurs.

The IT sector in India is generating 2.5 million direct employments. India is now one of the biggest IT capitals of the modern world and all the major players in the world IT sector are present in the country.

The major cities that account for about nearly 90% of the sector's exports are Bangalore, Chennai, Kolkata, Hyderabad, Trivandrum, Noida, Mumbai and Pune. Bangalore is considered to be the Silicon Valley of India because it is the leading IT exporter. Exports dominate the industry and constitute about 77% of the total industry revenue. However, the domestic market is also significant with a robust revenue growth. The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.

Regulated VSAT links became visible in 1994. Desai (2006) describes the steps taken to relax regulations on linking in 1991:

In 1991 the Department of Electronics broke this impasse, creating a corporation called Software Technology Parks of India (STPI) that, being owned by the government, could provide VSAT communications without breaching its monopoly. STPI set up software technology parks in different cities, each of which provided satellite links to be used by firms; the local link was a wireless radio link. In 1993 the government began to allow individual companies their own dedicated links, which allowed work done in India to be transmitted abroad directly. Indian firms soon convinced their American customers that a satellite link was as reliable as a team of programmers working in the clients’ office. Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991, the 64 kbit/s leased line service in 1992, and commercial Internet access on a visible scale in 1992. Election results were displayed via National Informatics Centre's NICNET.

The Indian economy underwent economic reforms in 1991, leading to a new era of globalization and international economic integration. Economic growth of over 6% annually was seen during 1993-2002. The economic reforms were driven in part by significant the internet usage in the country. The new administration under Atal Bihari Vajpayee 1999 govt pm—which placed the development of Information Technology among its top five priorities— formed the Indian National Task Force on Information Technology and Software Development.

Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information Technology and Software Development:

Within 90 days of its establishment, the Task Force produced an extensive background report on the state of technology in India and an IT Action Plan with 108 recommendations. The Task Force could act quickly because it built upon the experience and frustrations of state governments, central government agencies, universities, and the software industry. Much of what it proposed was also consistent with the thinking and recommendations of international bodies like the World Trade Organization (WTO), International Telecommunications Union (ITU), and World Bank. In addition, the Task Force incorporated the experiences of Singapore and other nations, which implemented similar programs. It was less a task of invention than of sparking action on a consensus that had already evolved within the networking community and government. "The New Telecommunications Policy, 1999" (NTP 1999) helped further liberalize India's telecommunications sector. The Information Technology Act 2000 created legal procedures for electronic transactions and e-commerce.

Throughout the 1990s, another wave of Indian professionals entered the United States. The number of Indian Americans reached 1.7 million by 2000. This immigration consisted largely of highly educated technologically proficient workers. Within the United States, Indians fared well in science, engineering, and management. Graduates from the Indian Institutes of Technology (IIT) became known for their technical skills. The success of Information Technology in India not only had economic repercussions but also had far-reaching political consequences. India's reputation both as a source and a destination for skilled workforce helped it improve its relations with a number of world economies. The relationship between economy and technology—valued in the western world—facilitated the growth of an entrepreneurial class of immigrant Indians, which further helped aid in promoting technology-driven growth.

Recent development The economic effect of the technologically inclined services sector in India— accounting for 40% of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce—is summarized by Sharma (2006): "Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. India's second and third largest software companies are headquartered in Bangalore, as are many of the global SEI-CMM Level 100 Companies."citation needed Numerous IT companies are based in Mumbai, such as TCS (among India's first and largest), Reliance,disambiguation needed Patni, LnT Infotech, Myzornis Corporation and i-Flex. Thiruvananthapuram (Trivandrum), the capital of Kerala state, is the foremost among the Tier II cities that is rapidly growing in terms of IT infrastructure. As the software hub of Kerala, more than 80% of the state's software exports are from here. Major campuses and headquarters of companies such as Infosys, Oracle Corporation, IBS Software Services and UST Global are located in the city. India's biggest IT company Tata Consultancy Services is building the country's largest IT training facility in Trivandrum—the project is worth INR10 billion and will have a capacity of 10,000 seats. The completion of the facility is expected in 2014 or 2015.

On 25 June 2002, India and the European Union agreed to bilateral cooperation in the field of science and technology. A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. India holds observer status at CERN, while a joint India-EU Software Education and Development Center will be located in Bangalore.

Major IT Hubs Rank Description Popularly known as the Silicon Valley of India and leading software exporter from India. Bangalore is 1 Bangalore considered to be a global information technology hub of India. Chennai is the Second largest exporter of IT and ITES 2 Chennai of India, and is the BPO hub of India 3 Hyderabad Hyderabad is a major IT hub in India. It has become the first destination for the Microsoft development centre in India and largest software development centre outside of their headquarters in Redmond, Washington. It is also known as Cyber bad which consists of many Multinational corporation companies such as Google, Facebook, Microsoft, Amazon, Oracle and Electronic Arts, AT&T, Deloitte etc. . The Financial capital of India, but recently many IT 4 Mumbai companies have established offices. The National Capital Region comprising Delhi, Gorgon 5 Delhi and Noida are clusters of software development. Major Indian and International Firms present in Pune. 6 Pune Pune is also C-DAC headquarters. The city is a major back-end operational hub for IBM, 7 Kolkata Deloitte. The capital city of Odisha, an emerging IT and 8 Bhubaneswar education hub, is one of India's fastest developing cities. The capital of Kerala, now houses all major IT 9 Thiruvananthapuram companies including Oracle, TCS, Infosys, and contributes in IT export of India. The commercial capital of Kerala, now houses all major 9 Kochi IT companies including TCS, Cognizant, and contributes in IT export of India.

Employment This sector has also led to massive employment generation. The industry continues to be a net employment generator - expected to add 230,000 jobs in FY2012, thus providing direct employment to about 2.8 million, and indirectly employing 8.9 million people. Generally dominant player in the global outsourcing sector. However, the sector continues to face challenges of competitiveness in the globalized and modern world, particularly from countries like China and Philippines.

India's growing stature in the Information Age enabled it to form close ties with both the United States of America and the European Union. However, the recent global financial crises has deeply impacted the Indian IT companies as well as global companies. As a result hiring has dropped sharply, and employees are looking at different sectors like the financial service, telecommunications, and manufacturing industries, which have been growing phenomenally over the last few years.10 India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs.11 The first software export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 1980s.12

FUTURE OUTLOOK: The Indian IT market currently focuses on providing low cost solution in the services business of global IT. Presence of Indian companies in the product development business of global IT is very meager, however, this number is slowly on the raise. US giants that outsource work to India, do not allocate the high end SDLC (Software Development Life Cycle) processes like requirement analysis, high level design and architectural design, although some Indian IT players have enough competency to take up and successfully complete these high level software jobs. The other prominent trend is, IT jobs, that were earlier confined to Bangalore, are slowly starting to experience a geographical diffuse into other cities like Chennai, Hyderabad and Pune. The growth is not fast paced, this, can be largely attributed to the lethargic attitude of the government in providing proper telecommunication infrastructure. The penetration levels are higher for mobile, but, the speed at which the backbone infrastructure works (network speed) and the coverage it offers are far below what other countries of the world have currently in offer.

The Indian Advantage The above listed views might possibly work against India’s’ dream to become the biggest contributor to world IT business, but, if there is one factor that is particular only to India, and, the one that can nullify all negative factors lined up against it, would be, the volume of young, English speaking talent pool that India has got to offer. This number far exceeds, any other country can generate in the coming years. It cannot be denied that China is gearing up to reduce the English fluency gap, but, at the same time, doing it with ease like India, is a topic of

From Services to Product Orientation The migration of Indian IT companies to mainstream product development is not happening any time in the near future, this, primarily can be attributed to the fact that was discussed in earlier section, which is, lack of innovation culture amongst the top hierarchy of the firm, and, less availability of skilled management graduates in the country. However, what might possibly happen is, global multinationals that are currently outsourcing services and back office jobs to India, might outsource more of higher level jobs in SDLC (Software Development Life Cycle) like requirement analysis and architecture design. The other opportunity is, Indian subsidiaries of global multinationals might take up significant chunk of the product development than what they are currently doing, this, however, is not happening currently because, the global IT firms are still not comfortable in working out a way to extract high end work from Indian companies. Research and Development- The new drivers The research in the industry was earlier concentrated towards programming technologies like Java, in the recent times, the research focus changed towards technologies like mobile computing, cloud computing and software as a service. This shift is attributed to preference of clients towards the ubiquitous computing over standalone computing and the growing demand for low cost computing solutions.

See also

 Technopark, Trivandrum

 Techno city, Thiruvananthapuram

 Supercomputing in India

 HITEC City

 List of IT companies in India

 PARAM

Web development Web development is a broad term for the work involved in developing a web site for the Internet (World Wide Web) or an intranet (a private network). Web development can range from developing the simplest static single page of plain text to the most complex web-based internet applications, electronic businesses, and social network services. A more comprehensive list of tasks to which web development commonly refers, may include web design, web content development, client liaison, client-side/server-side scripting, web server and network security configuration, and e-commerce development. Among web professionals, "web development" usually refers to the main non-design aspects of building web sites: writing markup and coding.

For larger organizations and businesses, web development teams can consist of hundreds of people (web developers). Smaller organizations may only require a single permanent or contracting webmaster, or secondary assignment to related job positions such as a graphic designer and/or information systems technician. Web development may be a collaborative effort between departments rather than the domain of a designated department.

Web development as an industry Since the commercialization of the web, web development has been a growing industry. The growth of this industry is being pushed especially by businesses wishing to sell products and services to online customers.1

For tools and platforms, the public can use many open source systems to aid in web development. A popular example, the LAMP (Linux, Apache, MySQL, PHP) stack is available for download online free of charge. This has kept the cost of learning web development to a minimum. Another contributing factor to the growth of the industry has been the rise of easy-to-use WYSIWYG web-development software, most prominently Adobe Dreamweaver, WebDev, and Microsoft Expression Studio. Using such software, virtually anyone can relatively quickly learn to develop a very basic web page. Knowledge of HyperText Markup Language (HTML) or of programming languages is still required to use such software, but the basics can be learned and implemented quickly with the help of help files, technical books, internet tutorials, or face-to-face training. An ever growing set of tools and technologies have helped developers build more dynamic and interactive websites. Web developers now help to deliver applications as web services which were traditionally only available as applications on a desk- based computer.

Instead of running executable code on a local computer, users can interact with online applications to create new content. This has created new methods in communication and allowed for many opportunities to decentralize information and media distribution. Users can interact with applications from many locations, instead of being tied to a specific workstation for their application environment.

Examples of dramatic transformation in communication and commerce led by web development include e-commerce. Online auction-sites such as eBay have changed the way consumers find and purchase goods and services. Online retailers such as Amazon.com and Buy.com (among many others) have transformed the shopping and bargain-hunting experience for many consumers. Another good example of transformative communication led by web development is the blog. Web applications such as WordPress and Movable Type have created easily-implemented blog-environments for individual web sites. The popularity of open-source content management systems such as Joomla!, Drupal, XOOPS, and TYPO3 and enterprise content management systems such as Alfresco and eXo Platform have extended web development's impact at online interaction and communication.

Web development has also impacted personal networking and marketing. Websites are no longer simply tools for work or for commerce, but serve more broadly for communication and social networking. Websites such as Facebook and Twitter provide users with a platform to communicate and organizations with a more personal and interactive way to engage the public. Typical areas Web Development can be split into many areas and a typical and basic web development hierarchy might consist of:

Client side coding

 Ajax Asynchronous JavaScript provides new methods of using JavaScript, and other languages to improve the user experience.

 Flash Adobe Flash Player is a ubiquitous browser plugin ready for RIAs. Flex 2 is also deployed to the Flash Player (version 9+).

 JavaScript Java Script is a ubiquitous client side platform for creating and delivering rich web applications that can also run across a wide variety of devices. It is a dialect of the scripting language ECMA Script.

 j Query Cross-browser JavaScript library designed to simplify and speed up the client-side scripting of HTML.

 Microsoft Silverlight Microsoft's browser plug-in that enables animation, vector graphics and high-definition video playback, programmed using XAML and .NET programming languages.

 HTML5 and CSS3 Latest HTML proposed standard combined with the latest proposed standard for CSS natively supports much of the client-side functionality provided by other frameworks such as Flash and Silverlight

Looking at these items from an "umbrella approach", client side coding such as XHTML is executed and stored on a local client (in a web browser) whereas server side code is not available to a client and is executed on a web server which generates the appropriate XHTML which is then sent to the client. The nature of client side coding allows one to alter the HTML on a local client and refresh the pages with updated content (locally), web designers must bear in mind the importance and relevance to security with their server side scripts. If a server side script accepts content from a locally modified client side script, the web development of that page is poorly sanitized with relation to security.

Server side coding

 ASP (Microsoft proprietary)

 ColdFusion (Adobe proprietary, formerly Macromedia, formerly Allaire)

 CGI

 Erlang, with Linux, Yaws, Mnesia, Erlang (LYME) solution stack

 Groovy, using the Grails framework

 Java, e.g. Java Servlets, JSP or WebObjects

 Lotus Domino

 Node.js

 Perl, e.g. Catalyst, Dancer or Mojolicious (all open source)

 PHP (open source)  Python, e.g. Django (web framework) (open source)

 Ruby, e.g. Ruby on Rails (open source)

 Scala, e.g. Play Framework, Lift Framework

 SSJS Server-Side JavaScript, e.g. Aptana Jaxer, Mozilla Rhino

 .NET and .NET MVC Frameworks (Microsoft proprietary)

Client side + server side

 Google Web Toolkit provides tools to create and maintain complex JavaScript front-end applications in Java.

 Dart provides tools to create and maintain complex JavaScript front-end applications as well as supporting server-side code in Dart (programming language).

 Opa is a high-level language in which both the client and the server parts are implemented. The compiler then decides which parts run on the client (and are translated automatically to JavaScript) and which parts run on the server. The developer can tune those decisions with simple directives. (open source)

 Pyjamas is a tool and framework for developing Ajax applications and Rich Internet Applications in Python.

 Tersus is a platform for the development of rich web applications by visually defining user interface, client side behavior and server side processing. (open source) However languages like Ruby and Python are often paired with database servers other than MySQL (the M in LAMP). Below are example of other databases currently in wide use on the web. For instance some developers prefer a LAPR (Linux/Apache/PostgreSQL/Ruby on Rails) setup for development.

Database technology

 Apache Derby *

 CouchDB *

 FileMaker

 Firebird *

 IBM DB2

 IBM Notes

 MariaDB *

 Mark_Logic

 Microsoft SQL Server

 MongoDB *

 MySQL *  Oracle

 PostgreSQL *

 Redis *

 SQLite *

 Sybase

 WebDNA

* open source / public domain

Practical web development

Basic In practice, many web developers will have basic interdisciplinary skills / roles, including:

 Graphic design / web design

 Information architecture and copywriting/copyediting with web usability, accessibility and search engine optimization in mind The above list is a simple website development hierarchy and can be extended to include all client side and server side aspects. It is still important to remember that web development is generally split up into client side coding, covering aspects such as the layout and design, and server side coding, which covers the website's functionality and back-end systems.

Advanced Some more advanced web developers will also have these interdisciplinary skills / roles:

 GUI (Graphic User Interface) design

 Audio, Video and Animation processing and encoding (for web usage)

 Flash Capabilities (animation, audio, video, scripting)

 Web content management system Deployment and/or Content management infrastructure design, development and integration

 Web applications development, integration and deployment

 Web server stress testing (how much traffic can a web server running a specific application endure before collapsing)

 Web site security analysis & testing

 Web site code optimization (which is an important aspect of search engine optimization)

 Project management, QA and other aspects common to IT development  Advanced customized admin panel (For end-users)

 Database integration with web applications

Security considerations Web development takes into account many security considerations, such as data entry error checking through forms, filtering output, and encryption.2 Malicious practices such as SQL injection can be executed by users with ill intent yet with only primitive knowledge of web development as a whole. Scripts can be used to exploit websites by granting unauthorized access to malicious users that try to collect information such as email addresses, passwords and protected content like credit card numbers.

Some of this is dependent on the server environment (most commonly Apache or Microsoft IIS) on which the scripting language, such as PHP, Ruby, Python, Perl or ASP is running, and therefore is not necessarily down to the web developer themselves to maintain. However, stringent testing of web applications before public release is encouraged to prevent such exploits from occurring. If some contact form is provided in a website it should include a captcha field in it which prevents computer programs from automatically filling forms and also mail spamming.

Keeping a web server safe from intrusion is often called Server Port Hardening. Many technologies come into play to keep information on the internet safe when it is transmitted from one location to another. For instance Secure Socket Layer Encryption (SSL) Certificates are issued by certificate authorities to help prevent internet fraud. Many developers often employ different forms of encryption when transmitting and storing sensitive information. A basic understanding of information technology security concerns is often part of a web developer's knowledge. Because new security holes are found in web applications even after testing and launch, security patch updates are frequent for widely used applications. It is often the job of web developers to keep applications up to date as security patches are released and new security concerns are discovered.

Web design Web design encompasses many different skills and disciplines in the production and maintenance of websites. The different areas of web design include web graphic design; interface design; authoring, including standardized code and proprietary software; user experience design; and search engine optimization. Often many individuals will work in teams covering different aspects of the design process, although some designers will cover them all.1 The term web design is normally used to describe the design process relating to the front-end (client side) design of a website including writing mark up. Web design partially overlaps web engineering in the broader scope of web development. Web designers are expected to have an awareness of usability and if their role involves creating mark up then they are also expected to be up to date with web accessibility guidelines.

HISTORY

1988—2001 Although web design has a fairly recent history, it can be linked to other areas such as graphic design. However web design can also be seen from a technological standpoint. It has become a large part of people’s everyday lives. It is hard to imagine the Internet without animated graphics, different styles of typography, background and music. The start of the web and web design In 1989, whilst working at CERN Tim Berners-Lee proposed to create a global hypertext project, which later became known as the World Wide Web. During 1991 to 1993 the World Wide Web was born. Text-only pages could be viewed using a simple line-mode browser.2 In 1993 Marc Andreessen and Eric Bina, created the Mosaic browser. At the time there were multiple browsers, however the majority of them were Unix-based and naturally text heavy. There had been no integrated approach to graphic design elements such as images or sounds. The Mosaic browser broke this mould.3 The W3C was created in October 1994 to "lead the World Wide Web to its full potential by developing common protocols that promote its evolution and ensure its interoperability."This discouraged any one company from monopolizing a propriety browser and programming language, which could have altered the effect of the World Wide Web as a whole. The W3C continues to set standards, which can today be seen with JavaScript. In 1994 Andreessen formed Communications Corp. that later became known as Netscape Communications, the Netscape 0.9 browser. Netscape created its own HTML tags without regard to the traditional standards process. For example, Netscape 1.1 included tags for changing background colors and formatting text with tables on web pages. Throughout 1996 to 1999 the browser wars began, as Microsoft and Netscape fought for ultimate browser dominance. During this time there were many new technologies in the field, notably Cascading Style Sheets, JavaScript, and Dynamic HTML. On the whole, the browser competition did lead to many positive creations and helped web design evolve at a rapid pace.

Evolution of web design In 1996, Microsoft released its first competitive browser, which was complete with its own features and tags. It was also the first browser to support style sheets, which at the time was seen as an obscure authoring technique.5 The HTML markup for tables was originally intended for displaying tabular data. However designers quickly realized the potential of using HTML tables for creating the complex, multi-column layouts that were otherwise not possible. At this time, as design and good aesthetics seemed to take precedence over good mark-up structure, and little attention was paid to semantics and web accessibility. HTML sites were limited in their design options, even more so with earlier versions of HTML. To create complex designs, many web designers had to use complicated table structures or even use blank spacer .GIF images to stop empty table cells from collapsing.6 CSS was introduced in December 1996 by the W3C to support presentation and layout. This allowed HTML code to be semantic rather than both semantic and presentational, and improved web accessibility, see table less web design.

In 1996, Flash (originally known as Future Splash) was developed. At the time, the Flash content development tool was relatively simple compared to now, using basic layout and drawing tools, a limited precursor to Action Script, and a timeline, but it enabled web designers to go beyond the point of HTML, animated GIFs and JavaScript. However, because Flash required a plug-in, many web developers avoided using it for fear of limiting their market share due to lack of compatibility. Instead, designers reverted to gif animations (if they didn't forego using motion graphics altogether) and JavaScript for widgets. But the benefits of Flash made it popular enough among specific target markets to eventually work its way to the vast majority of browsers, and powerful enough to be used to develop entire sites.

End of the first browser wars During 1998 Netscape released Netscape Communicator code under an open source license, enabling thousands of developers to participate in improving the software. However, they decided to start from the beginning, which guided the development of the open source browser and soon expanded to a complete application platform.5 The Web Standards Project was formed and promoted browser compliance with HTML and CSS standards by creating Acid1, Acid2, and Acid3 tests. 2000 was a big year for Microsoft. Internet Explorer was released for Mac; this was significant as it was the first browser that fully supported HTML 4.01 and CSS 1, raising the bar in terms of standards compliance. It was also the first browser to fully support the PNG image format.5 During this time Netscape was sold to AOL and this was seen as Netscape’s official loss to Microsoft in the browser wars.

2001—2012 Since the start of the 21st century the web has become more and more integrated into people’s lives. As this has happened the technology of the web has also moved on. There have also been significant changes in the way people use and access the web, and this has changed how sites are designed.

Modern browsers Since the end of the browsers wars there have been new browsers coming onto the scene. Many of these are open source meaning that they tend to have faster development and are more supportive of new standards. The new options are considered by many to be better than Microsoft's Internet Explorer.

New standards The W3C has released new standards of HTML (HTML5) and CSS (CSS3), as well as new JavaScript API's, each as a new but individual standard. However, while the term HTML5 is only used to refer to the new version of HTML and some of the JavaScript API's, it has become common to use it to refer to the entire suite of new standards (HTML5, CSS3 and JavaScript) Tools and technologies Web designers use a variety of different tools depending on what part of the production process they are involved in. These tools are updated over time by newer standards and software but the principles behind them remain the same. Web graphic designers use vector and raster graphics packages to create web-formatted imagery or design prototypes. Technologies used to create websites include standardized mark-up, which can be hand-coded or generated by WYSIWYG editing software. There is also proprietary software based on plug-ins that bypasses the client’s browser versions. These are often WYSIWYG but with the option of using the software’s scripting language. Search engine optimization tools may be used to check search engine ranking and suggest improvements.

Other tools web designers might use include mark up validators 7 and other testing tools for usability and accessibility to ensure their web sites meet web accessibility guidelines.

Skills and techniques

Marketing and communication design Marketing and communication design on a website may identify what works for its target market. This can be an age group or particular strand of culture; thus the designer may understand the trends of its audience. Designers may also understand the type of website they are designing, meaning, for example, that (B2B) business- to-business website design considerations might differ greatly from a consumer targeted website such as a retail or entertainment website. Careful consideration might be made to ensure that the aesthetics or overall design of a site do not clash with the clarity and accuracy of the content or the ease of web navigation, especially on a B2B website. Designers may also consider the reputation of the owner or business the site is representing to make sure they are portrayed favorably.

User experience design and interactive design User understanding of the content of a website often depends on user understanding of how the website works. This is part of the user experience design. User experience is related to layout, clear instructions and labeling on a website. How well a user understands how they can interact on a site may also depend on the interactive design of the site. If a user perceives the usefulness of the website, they are more likely to continue using it. Users who are skilled and well versed with website use may find a more unique, yet less intuitive or less user-friendly website interface useful nonetheless. However, users with less experience are less likely to see the advantages or usefulness of a less intuitive website interface. This drives the trend for a more universal user experience and ease of access to accommodate as many users as possible regardless of user skill.10 Much of the user experience design and interactive design are considered in the user interface design.

Advanced interactive functions may require plug-ins if not advanced coding language skills. Choosing whether or not to use interactivity that requires plug-ins is a critical decision in user experience design. If the plug-in doesn't come pre- installed with most browsers, there's a risk that the user will have neither the know how or the patience to install a plug-in just to access the content. If the function requires advanced coding language skills, it may be too costly in either time or money to code compared to the amount of enhancement the function will add to the user experience. There's also a risk that advanced interactivity may be incompatible with older browsers or hardware configurations. Publishing a function that doesn't work reliably is potentially worse for the user experience than making no attempt. It depends on the target audience if it's likely to be needed or worth any risks. Page layout Part of the user interface design is affected by the quality of the page layout. For example, a designer may consider whether the site's page layout should remain consistent on different pages when designing the layout. Page pixel width may also be considered vital for aligning objects in the layout design. The most popular fixed-width websites generally have the same set width to match the current most popular browser window, at the current most popular screen resolution, on the current most popular monitor size. Most pages are also center-aligned for concerns of aesthetics on larger screens.

Fluid layouts increased in popularity around 2000 as an alternative to HTML-table- based layouts and grid-based design in both page layout design principle and in coding technique, but were very slow to be adopted.note 1 This was due to considerations of screen reading devices and varying windows sizes which designers have no control over. Accordingly, a design may be broken down into units (sidebars, content blocks, embedded advertising areas, navigation areas) that are sent to the browser and which will be fitted into the display window by the browser, as best it can. As the browser does recognize the details of the reader's screen (window size, font size relative to window etc.) the browser can make user- specific layout adjustments to fluid layouts, but not fixed-width layouts. Although such a display may often change the relative position of major content units, sidebars may be displaced below body text rather than to the side of it. This is a more flexible display than a hard-coded grid-based layout that doesn't fit the device window. In particular, the relative position of content blocks may change while leaving the content within the block unaffected. This also minimizes the user's need to horizontally scroll the page. Responsive Web Design is a newer approach, based on CSS3, and a deeper level of per-device specification within the page's style sheet through an enhanced use of the CSS @media pseudo-selector.

Typography Web designers may choose to limit the variety of website typefaces to only a few which are of a similar style, instead of using a wide range of typefaces or type styles. Most browsers recognize a specific number of safe fonts, which designers mainly use in order to avoid complications.

Font downloading was later included in the CSS3 fonts module and has since been implemented in Safari 3.1, Opera 10 and Mozilla Firefox 3.5. This has subsequently increased interest in web typography, as well as the usage of font downloading.

Most site layouts incorporate negative space to break the text up into paragraphs and also avoid center-aligned text.12

Motion graphics The page layout and user interface may also be affected by the use of motion graphics. The choice of whether or not to use motion graphics may depend on the target market for the website. Motion graphics may be expected or at least better received with an entertainment-oriented website. However, a website target audience with a more serious or formal interest (such as business, community, or government) might find animations unnecessary and distracting if only for entertainment or decoration purposes. This doesn't mean that more serious content couldn't be enhanced with animated or video presentations that are relevant to the content. In either case, motion graphic design may make the difference between more effective visuals or distracting visuals. Quality of code Website designers may consider it to be good practice to conform to standards. This is usually done via a description specifying what the element is doing. Failure to conform to standards may not make a website unusable or error prone, but standards can relate to the correct layout of pages for readability as well making sure coded elements are closed appropriately. This includes errors in code, more organized layout for code, and making sure IDs and classes are identified properly. Poorly-coded pages are sometimes colloquially called tag soup. Validating via W3C 7 can only be done when a correct DOCTYPE declaration is made, which is used to highlight errors in code. The system identifies the errors and areas that do not conform to web design standards. This information can then be corrected by the user.13

Homepage design Usability experts, including Jakob Nielsen and Kyle Saucy, have often emphasized homepage design for website success and asserted that the homepage is the most important page on a website. However practitioners into the 2000s were starting to find that a growing number of website traffic was bypassing the homepage, going directly to internal content pages through search engines, e-newsletters and RSS feeds. Leading many practitioners to argue that homepages are less important than most people think. Jared Spool argued in 2007 that a site's homepage was actually the least important page on a website.

In 2012 and 2013, carousels (also called 'sliders' and 'rotating banners') have become an extremely popular design element on homepages, often used to showcase featured or recent content in a confined space. Many practitioners argue that carousels are an ineffective design element and hurt a website's search engine optimisation and usability. Occupations There are two primary jobs involved in creating a website: the web designer and web developer, who often work closely together on a website. The web designers are responsible for the visual aspect, which includes the layout, coloring and typography of a web page. Web designers will also have a working knowledge of using a variety of languages such as HTML, CSS, JavaScript, PHP and Flash to create a site, although the extent of their knowledge will differ from one web designer to another. Particularly in smaller organizations one person will need the necessary skills for designing and programming the full web page, while larger organizations may have a web designer responsible for the visual aspect alone.

Further jobs which may become involved in the creation of a website include:

 Graphic designers to create visuals for the site such as logos, layouts and buttons

 Internet marketing specialists to help maintain web presence through strategic solutions on targeting viewers to the site, by using marketing and promotional techniques on the internet

 SEO writers to research and recommend the correct words to be incorporated into a particular website and make the website more accessible and found on numerous search engines

 Internet copywriter to create the written content of the page to appeal to the targeted viewers of the site  User experience (UX) designer incorporates aspects of user focused design considerations which include information architecture, user centered design, user testing, interaction design, and occasionally visual design.

WEB APPLICATION

A web application or web app is any application software that runs in a web browser and is created in a browser-supported programming language (such as the combination of JavaScript, HTML and CSS) and relies on a common web browser to render the application.

Web applications are popular due to the ubiquity of web browsers, and the convenience of using a web browser as a client, sometimes called a thin client. The ability to update and maintain web applications without distributing and installing software on potentially thousands of client computers is a key reason for their popularity, as is the inherent support for cross-platform compatibility. Common web applications include webmail, online retail sales, online auctions, wikis and many other functions.

History In earlier computing models, e.g. in client-server, the load for the application was shared between code on the server and code installed on each client locally. In other words, an application had its own client program which served as its user interface and had to be separately installed on each user's personal computer. An upgrade to the server-side code of the application would typically also require an upgrade to the client-side code installed on each user workstation, adding to the support cost and decreasing productivity. In addition, both the client and server components of the application were usually tightly bound to a particular computer architecture and operating system and porting them to others was often prohibitively expensive for all but the largest applications.

In contrast, web applications use web documents written in a standard format such as HTML and JavaScript, which are supported by a variety of web browsers. Web applications can be considered as a specific variant of client-server software where the client software is downloaded to the client machine when visiting the relevant web page, using standard procedures such as HTTP. Client web software updates may happen each time the web page is visited. During the session, the web browser interprets and displays the pages, and acts as the universal client for any web application.

In the early days of the Web each individual web page was delivered to the client as a static document, but the sequence of pages could still provide an interactive experience, as user input was returned through web form elements embedded in the page markup. However, every significant change to the web page required a round trip back to the server to refresh the entire page.

In 1995 Netscape introduced a client-side scripting language called JavaScript allowing programmers to add some dynamic elements to the user interface that ran on the client side. So instead of sending data to the server in order to generate an entire web page, the embedded scripts of the downloaded page can perform various tasks such as input validation or showing/hiding parts of the page.

In 1996, Macromedia introduced Flash, a vector animation player that could be added to browsers as a plug-in to embed animations on the web pages. It allowed the use of a scripting language to program interactions on the client side with no need to communicate with the server.

In 1999, the "web application" concept was introduced in the Java language in the Servlet Specification version 2.2. 2.1?. At that time both JavaScript and XML had already been developed, but Ajax had still not yet been coined and the XMLH ttpRequest object had only been recently introduced on Internet Explorer 5 as an ActiveX object.

In 2005, the term Ajax was coined, and applications like Gmail started to make their client sides more and more interactive. A web page script is able to contact the server for storing/retrieving data without downloading an entire web page.

In 2011, HTML5 was finalized, which provides graphic and multimedia capabilities without the need of client side plug-in. HTML5 also enriched the semantic content of documents. The APIs and document object model (DOM) are no longer afterthoughts, but are fundamental parts of the HTML5 specification. WebGL API paved the way for advanced 3D graphics based on HTML5 canvas and JavaScript language. These have significant importance in creating truly platform and browser independent rich web applications.

Interface Through Java, JavaScript, DHTML, Flash, Silver light and other technologies, application-specific methods such as drawing on the screen, playing audio, and access to the keyboard and mouse are all possible. Many services have worked to combine all of these into a more familiar interface that adopts the appearance of an operating system. General purpose techniques such as drag and drop are also supported by these technologies. Web developers often use client-side scripting to add functionality, especially to create an interactive experience that does not require page reloading. Recently, technologies have been developed to coordinate client- side scripting with server-side technologies such as PHP. Ajax, a web development technique using a combination of various technologies, is an example of technology which creates a more interactive experience. Structure Applications are usually broken into logical chunks called "tiers", where every tier is assigned a role. Traditional applications consist only of 1 tier, which resides on the client machine, but web applications lend themselves to an n-tiered approach by nature. Though many variations are possible, the most common structure is the three-tiered application.7 In its most common form, the three tiers are called presentation, application and storage, in this order. A web browser is the first tier (presentation), an engine using some dynamic Web content technology (such as ASP, ASP.NET, CGI, ColdFusion, JSP/Java, PHP, Perl, Python, Ruby on Rails or Struts2) is the middle tier (application logic), and a database is the third tier (storage). The web browser sends requests to the middle tier, which services them by making queries and updates against the database and generates a user interface.

For more complex applications, a 3-tier solution may fall short, and it may be beneficial to use an n-tiered approach, where the greatest benefit is breaking the business logic, which resides on the application tier, into a more fine-grained model. Another benefit may be adding an integration tier that separates the data tier from the rest of tiers by providing an easy-to-use interface to access the data. For example, the client data would be accessed by calling a "list_clients()" function instead of making an SQL query directly against the client table on the database. This allows the underlying database to be replaced without making any change to the other tiers.

There are some who view a web application as a two-tier architecture. This can be a "smart" client that performs all the work and queries a "dumb" server, or a "dumb" client that relies on a "smart" server.7 The client would handle the presentation tier, the server would have the database (storage tier), and the business logic (application tier) would be on one of them or on both.7 While this increases the scalability of the applications and separates the display and the database, it still doesn't allow for true specialization of layers, so most applications will outgrow this model.

Business use An emerging strategy for application software companies is to provide web access to software previously distributed as local applications. Depending on the type of application, it may require the development of an entirely different browser-based interface, or merely adapting an existing application to use different presentation technology. These programs allow the user to pay a monthly or yearly fee for use of a software application without having to install it on a local hard drive. A company which follows this strategy is known as an application service provider (ASP), and ASPs are currently receiving much attention in the software industry.

Security breaches on these kinds of applications are a major concern because it can involve both enterprise information and private customer data. Protecting these assets is an important part of any web application and there are some key operational areas that must be included in the development process.8 This includes processes for authentication, authorization, asset handling, input, and logging and auditing. Building security into the applications from the beginning can be more effective and less disruptive in the long run.

In cloud computing model web applications are software as a service (SaaS). There are business applications provided as SaaS for enterprises for fixed or usage dependent fee. Other web applications are offered free of charge, often generating income from advertisements shown in web application interface.

Many businesses are enabled by open source web applications such as e-commerce software that facilitates easily creating an online retail store. Most businesses today do not need to buy data center hardware such as servers because they are affordably rented on a short term basis from a plethora of hosting companies that provide turnkey implementations of web applications. It is common for hosting providers to also offer packages of hardware and all necessary software to support the business needs of a company. Innovations in all aspects of web applications are providing tremendous economic value by increasing competition by reducing barriers to entry for new companies.

Writing web applications Main article: Web application development Writing of web applications is often simplified by open source software such as Django, Drupal, Ruby on Rails or Symfony called web application frameworks. These frameworks facilitate rapid application development by allowing a development team to focus on the parts of their application which are unique to their goals without having to resolve common development issues such as user management.9 While many of these frameworks are open source, this is by no means a requirement.

The use of web application frameworks can often reduce the number of errors in a program, both by making the code simpler, and by allowing one team to concentrate on the framework while another focuses on a specified use case. In applications which are exposed to constant hacking attempts on the Internet, security-related problems can be caused by errors in the program. Frameworks can also promote the use of best practices such as GET after POST.

In addition, there is potential for the development of applications on Internet operating systems, although currently there are not many viable platforms that fit this model. Applications Examples of browser applications are simple office software (word processors, online spreadsheets, and presentation tools), but can also include more advanced applications such as project management, computer-aided design, video editing and point-of-sale.

Benefits

 Web applications do not require any complex "roll out" procedure to deploy in large organizations. A compatible web browser is all that is needed;

 Browser applications typically require little or no disk space on the client;

 They require no upgrade procedure since all new features are implemented on the server and automatically delivered to the users;

 Web applications integrate easily into other server-side web procedures, such as email and searching.

 They also provide cross-platform compatibility in most cases (i.e., Windows, Mac, Linux, etc.) because they operate within a web browser window.

 With the advent of HTML5, programmers can create richly interactive environments natively within browsers. Included in the list of new features are native audio, video and animations, as well as improved error handling.  Modern web applications support greater interactivity and greatly improved usability through technologies such as AJAX that efficiently exchange data between the browser and the server.

 Web applications allow for easier introduction of new user devices (e.g. smartphones, tablets) because they have built-in browsers.

Drawbacks

 In practice, web interfaces, compared to thick clients, typically force significant sacrifice to user experience and basic usability.

 Web applications absolutely require compatible web browsers. If a browser vendor decides not to implement a certain feature, or abandons a particular platform or operating system version, this may affect a huge number of users;

 Standards compliance is an issue with any non-typical office document creator, which causes problems when file sharing and collaboration becomes critical;

 Browser applications rely on application files accessed on remote servers through the Internet. Therefore, when connection is interrupted, the application is no longer usable. However, if it uses HTML5 API's such as Offline Web application caching,11 it can be downloaded and installed locally, for offline use. Google Gears, although no longer in active development, is a good example of a third party plugin for web browsers that provides additional functionality for creating web applications;  Since many web applications are not open source, there is also a loss of flexibility, making users dependent on third-party servers, not allowing customizations on the software and preventing users from running applications offline (in most cases). However, if licensed, proprietary software can be customized and run on the preferred server of the rights owner;

 They depend entirely on the availability of the server delivering the application. If a company goes bankrupt and the server is shut down, the users have little recourse. Traditional installed software keeps functioning even after the demise of the company that produced it (though there will be no updates or customer service);

 Likewise, the company has much greater control over the software and functionality. They can roll out new features whenever they wish, even if the users would like to wait until the bugs have been worked out before upgrading. The option of simply skipping a weak software version is often not available. The company can foist unwanted features on the users or cut costs by reducing bandwidth. Of course, companies will try to keep the good will of their customers, but the users of web applications have fewer options in such cases unless a competitor steps in and offers a better product and easy migration;

 The company can theoretically track anything the users do. This can cause privacy problems.  According to Jonathan Strain, the online applications like Face book and Google Apps have made the Internet become far more proprietary than early versions of Microsoft Windows.

Web application development Web application development is the process and practice of developing web applications.

Risk Just as with a traditional desktop application, web applications have varying levels of risk. A personal home page is much less risky than, for example, a stock trading web site. For some projects security, software bugs, etc. are major issues. If time to market, or technical complexity is a concern, documentation, test planning, change control, requirements analysis, architectural description and formal design and construction practices can mitigate risk.

Technologies

 Ajax

 ASP

 ASP.NET

 CSS

 ColdFusion

 Java  JavaScript

 Perl

 PHP

 Ruby, including Ruby on Rails

 CGI

 Python

 Django

 HTML5

 Wt – Web toolkit

 WebObjects

 Xojo

 Drupal

Lifecycle Model Time to market, company-growth and requirements churn, three things that are emphasized in web-based business, coincide with the principles of the Agile practices. Some agile lifecycle models are:

 Extreme programming  Scrum

 Timebox development

 Feature-driven development

Testing Web applications undergo the same unit, integration and system testing as traditional desktop applications. But because web application clients vary so greatly, teams might perform some additional testing, such as:

 Security

 Performance, Load, and Stress

 HTML/CSS validation

 Accessibility

 Usability

 Cross-browser

Many types of tests are automatable. At the component level, one of the xUnit packages can be a helpful tool. Or an organization can create its own unit testing framework. At the GUI level, Watir or iMacros are useful. Tools In the case of ASP.NET, a developer can use Microsoft Visual Studio to write code. But, as with most other programming languages, he/she can also use a text editor. Notepad++ is an example. WebORB Integration Server for .NET can be used to integrate .NET services, data and media with any web client. It includes developer productivity tools and APIs for remoting, messaging and data management.

For ColdFusion and the related open source CFML engines, there are several tools available for writing code. These include Adobe Dreamweaver CS4, the CFEclipse plugin for Eclipse (software) and Adobe CF Builder. You can also use any text editor such as Notepad++ or TextEdit.

For PHP, the Zend Development Environment provides numerous debugging tools and provides a rich feature set to make a PHP developer's life easier. WebORB Integration Server for PHP can be used to integrate PHP classes and data with any web client. It includes developer productivity tools and APIs for remoting, messaging and data management. Tools such as Hammerkit abstract PHP into a visual programming environment and utilise component-based software methods to accelerate development.

For Java (programming language), there are many tools. The most popular is Apache Tomcat, but there are many others. One very specific one is WebORB Integration Server which can be used to integrate Java services, data and media with any web client. It includes developer productivity tools and APIs for remoting, messaging and data management.

Several code generation tools such as nuBuilder, dbQwikSite or M-Power are available to automate the development of code. Using such tools, non-technical users can produce working code, and experienced coders can accelerate the development cycle. Other tools include various browsers, FTP clients, etc. See Category:Web development software.

Frameworks and Reuse Main article: Web application framework Practicing code reuse and using web application frameworks can greatly improve both productivity and time to market (McConnell 1996:537). Reusing externally developed components can allow an organization to reap the above benefits, while potentially saving money. However, for smaller components, it might be just as easy to develop your own components as it would be to learn new APIs. Also, if a component is essential to the business, an organization might want to control its development.

E-commerce

Electronic commerce, commonly known as E-commerce or eCommerce, is trading in products or services conducted via computer networks such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. It is a Market entry strategy where the company may or may not have a physical presence.

E-commerce can be divided into 7 subsections:

 Etail or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"

 Buying or selling on websites and/or online marketplaces

 The gathering and use of demographic data through web contacts and social media

 Electronic data interchange, the business-to-business exchange of data

 E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)

 Business-to-business buying and selling

 The security of business transactions

 A timeline for the development of e-commerce:

1971 or 1972: The ARPANET is used to arrange a cannabis sale between students at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology, later described as "the seminal act of e-commerce" in John Markoff's book What the Dormouse Said.[1]

1979: Michael Aldrich demonstrates the first online shopping system.[2] 1981: Thomson Holidays UK is first business-to-business online shopping system to be installed.[3]

1982: Minitel was introduced nationwide in France by France Télécom and used for online ordering.

1983: California State Assembly holds first hearing on "electronic commerce" in Volcano, California.[4] Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and Pacific Telesis. (Not permitted to testify is Quantum Technology, later to become AOL.)

1984: Gateshead SIS/Tesco is first B2C online shopping system [5] and Mrs Snowball, 72, is the first online home shopper[6]

1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.[7]

1984: California becomes first US state to enact an Electronic Commerce Act defining basic consumer rights online.[citation needed]

1990: Tim Berners-Lee writes the first web browser, World Wide Web, using a NeXT computer.[8]

1992: Book Stacks Unlimited in Cleveland opens a commercial sales website (www.books.com) selling books online with credit card processing.

1992: St. Martin's Press publishes J.H. Snider and Terra Ziporyn's Future Shop: How New Technologies Will Change the Way We Shop and What We Buy.[9]

1992: Terry Brownell launches a fully graphical, iconic navigated Bulletin board system online shopping using Robo BOARD/FX.[citation needed]

1993: Paget Press releases edition No. 3 of the first[citation needed] App Store, The Electronic App Wrapper[10] 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption that made transactions secure.

1995: The US National Science Foundation lifts its former strict prohibition of commercial enterprise on the Internet.[11]

1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is the UK's first national online shopping service secure transaction. The shopping service at launch featured W H Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS), Inter flora, Dixons Retail, Past Times, PC World (retailer) and Innovations.

1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only radio stations, Radio HK and Net Radio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions.[citation needed] eBay is founded by computer programmer Pierre Omidyar as Auction Web.

1996: India MART B2B marketplace established in India.

1996: EC Plaza B2B marketplace established in Korea.

1996: Seller deck, formerly Actinic, the UK's first PC/LAN e-commerce platform established.[citation needed]

1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.[12]

1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to e-Companies, which was purchased in 1997 for US $149,000. The peer- to-peer file sharing software Napster launches. ATG Stores launches to sell decorative items for the home online. 2000: The dot-com bust.

2001: Alibaba.com achieved profitability in December 2001.

2002: eBay acquires PayPal for $1.5 billion.[13] Niche retail companies Way fair and Net Shops are founded with the concept of selling products through several targeted domains, rather than a central portal.

2003: Amazon.com posts first yearly profit.

2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model.[14]

2007: Business.com acquired by R.H. Donnelley for $345 million.[15]

2009: Zappos.com acquired by Amazon.com for $928 million.[16] Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.[17]

2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.[18][19]

2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500 million in cash plus $45 million in debt and other obligations.[20] GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion. [21]

2012: US e-Commerce and Online Retail sales projected to reach $226 billion, an increase of 12 percent over 2011.[22] 2012: US e-Commerce and Online Retail holiday sales reach $33.8 billion, up 13 percent.[23]

2014: Overstock.com processes over $1 million in Bit coin sales.[24] India’s e- commerce industry is estimated to have grown more than 30% from a year earlier to $12.6 billion in 2013.[25]

Business applications Some common applications related to electronic commerce are:

 Automated online assistants

 Instant messaging

 Newsgroups

 Online shopping and order tracking

 Online banking

 Online office suites

 Shopping cart software

 Teleconferencing

 Electronic tickets

 Social networking

 Governmental regulation

In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e- mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive.[26] Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers' personal information. As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC.

The Ryan Height Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies.

Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organizations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross- border transactions in both goods and services, and to help ensure exchanges of information among the participants for mutual benefit and understanding. From this came Econsumer.gov, an ICPEN initiative since April 2001. It is a portal to report complaints about online and related transactions with foreign companies.

There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Steering Group as well as working on common privacy regulations throughout the APEC region.

In Australia, Trade is covered under Australian Treasury Guidelines for electronic commerce,[29] and the Australian Competition and Consumer Commission[30] regulates and offers advice on how to deal with businesses online,[31] and offers specific advice on what happens if things go wrong.[32]

Also Australian government e-commerce website [33] provides information on e- commerce in Australia.

In the United Kingdom, The FSA (Financial Services Authority)[34] is the competent authority for most aspects of the Payment Services Directive (PSD). The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012.[35]

Forms

Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.

On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce. Aside from traditional e-Commerce, m-Commerce as well as the nascent t- Commerce channels are often seen as the current 2013 poster children of electronic I-Commerce.

Global trends

In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita.[37] The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises´ total revenue. Almost a quarter (24%) of the country’s total turnover is generated via the online channel.

Among emerging economies, China's e-commerce presence continues to expand every year. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online.

China's cross-border e-commerce is also growing rapidly. E-commerce transactions between China and other countries increased 32% to 2.3 trillion yuan ($375.8 billion) in 2012 and accounted for 9.6% of China's total international trade

Other BRIC countries are witnessing the accelerated growth of e-Commerce as well. In Russia, the total ecommerce market is projected to total somewhere between 690 billion rubles ($23 billion) and 900 billion rubles ($30 billion) in 2015, at 2010 values. This will equal 5% of total retail volume in Russia. Longer-term, the market size of Russian e-commerce could reach $50 billion by 2020. E-commerce players need to understand unique insights about trust factor, online payments and language peculiarities to penetrate the Russian market. Brazil's e -Commerce is growing quickly with retail e Commerce sales expected to grow at a healthy double- digit pace through 2014. By 2016, e Marketer expects retail e-commerce sales in Brazil to reach $17.3 billion.

India's ecommerce growth, on the other hand, has been slower although the country's potential remains solid considering its surging economy, the rapid growth of internet penetration, English language proficiency and a vast market of 1.2 billion consumers (although perhaps only 50 million access the internet through PCs and some estimate the most active group of e-commerce customers numbers only 2-3 million). E-commerce traffic grew about 50% from 2011 to 2012, from 26.1 million to 37.5 million, according to a report released by Com Score. Still much of the estimated 14 billion dollars in 2012 ecommerce was generated from travel sites.

E Commerce is also expanding across the Middle East. Having recorded the world's fastest growth in internet usage between 2000 and 2009, the region is home to more than 60 million internet users. Retail, travel and gaming are the region's top e -Commerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation [citation needed]. E-Commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them.

In 2012, ecommerce sales topped $1 trillion for the first time in history.

Mobile devices are playing an increasing role in the mix of e-Commerce. Some estimates show that purchases made on mobile devices will make up 25% of the market by 2017. According to Cisco Visual Networking Index, in 2014 the amount of mobile devices will outnumber the number of world population. Multichannel Selling is also worth mentioning, when it comes to e-commerce. As stated in E-commerce trends for 2014, multichannel selling is relatively young but though has already managed to become a key driver for promotion of small business companies unable to compete with media giants in Google. The essence of it lies in equipping a few shopping platforms like Amazon or next tag for goods promotion.

Impact on markets and retailers

Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.

Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based technology in order to accomplish their transactions. E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. Whether an individual is in the US or overseas, business can be conducted through the internet. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. E-bay is a good example of e-commerce business individuals and businesses are able to post their items and sell them around the Globe.

COMPANY PROFILE Founded in 2004, Cherry Technologies has provided workforce solutions to customers in a variety of industries throughout its history. Cherry Technologies Software Solutions’ range of workforce solutions and geographic coverage has grown steadily over the years to match the needs of our customers. 4 Technology Software Solution’s traditional expertise began with office services, call center, light industrial, and electronic assembly staffing. Today, 4 Technology Software Solutions also offers a comprehensive array of outsourcing and consulting services for its customers, including recruitment, human resource management, vendor management, and outplacement services on a global basis.

Cherry Technologies Software Solutions has evolved from a Indian IT -focused company concentrating primarily on traditional office services into a global workforce solutions leader with a breadth of specialty businesses. Cherry Technologies Software Solutions assigns professional and technical employees in the fields of finance and accounting, education, engineering, information technology, and healthcare. 4 Technology Software Solutions is the wide range of goals IT staffing provider and it ranks among the leaders in IT, engineering, and financial staffing.

PRODUCTION DEPARTMENT

Factors determining Production Planning Procedures:

The production planning used, varies from company to company. Production planning may begin with a product idea and a plan for the design of the product and the entire production/operating system to manufacture the product. It also includes the task of planning for the manufacturing of a modified version of an existing product using the existing facilities. The wide difference between planning procedures in one company and another is primarily due the differences in the economic and technological condition under which the firms operate. The three major factors determining production-planning procedures are:

Objectives of Production Department

 To maintain optimum inventory levels.

 To maintain flexibility in manufacturing operation.

 To co-ordinate between labor and machines and various supporting departments

 To minimize the product through-put time or production/ manufacturing cycle time

 To plan for plant capacities for future requirements

 To remove bottle neck at all stages of production and to solve problems related to production

 To deliver quality goods in required quantities to the customer in the required delivery schedule to achieve maximum customer satisfaction and minimum possible cost.

 To ensure maximum utilization of all resources

Production group no.1

Webiste Design

1. Planning The planning stage is arguably the most important, because what’s decided and mapped here sets the stage for the entire project. This is also the stage that requires client interaction and the accompanying attention to detail.

 Requirementanalysis This includes client goals, target audience, detailed feature requests and as much relevant information as you can possibly gather. Even if the client has carefully planned his or her website, don’t be afraid to offer useful suggestions from your experience.

 Projectcharter The project charter (or equivalent document) sums up the information that has been gathered and agreed upon in the previous point. These documents are typically concise and not overly technical, and they serve as a reference throughout the project.

 Sitemap A site map guides end users who are lost in the structure or need to find a piece of information quickly. Rather than simply listing pages, including links and a hierarchy of page organization is good practice.

 Contracts that define roles, copyright and financial points This is a crucial element of the documentation and should include payment terms, project closure clauses, termination clauses, copyright ownership and timelines. Be careful to cover yourself with this document, but be concise and efficient.

 Gain access to servers and build folder structure typical information to obtain and validate includes FTP host, username and password; control panel log-in information; database configuration; and any languages or frameworks currently installed.

 Determine required software and resources (stock photography, fonts, etc.) Beyond determining any third-party media needs, identify where you may need to hire sub-contractors and any additional software you may personally require. Add all of these to the project’s budget, charging the client where necessary.

2. Design

The design stage typically involves moving the information outlined in the planning stage further into reality. The main deliverables are a documented site structure and, more importantly, a visual representation. Upon completion of the design phase, the website should more or less have taken shape, but for the absence of the content and special features.

 Wireframe and design elements planning This is where the visual layout of the website begins to take shape. Using information gathered from the client in the planning phase begin designing the layout using a wireframe. Pencil and paper are surprisingly helpful during this phase, although many tools are online to aid as well.

 Mock-ups based on requirements analysis Designing mock-ups in Photoshop allows for relatively easy modification, it keeps the design elements organized in layers, and it primes you for slicing and coding when the time later on.  Review and approval cycle A cycle of reviewing, tweaking and approving the mock-ups often takes place until (ideally) both client and contractor are satisfied with the design. This is the easiest time to make changes, not after the design has been coded.

 Slice and code valid XHTML/CSS It’s coding time. Slice the final Photoshop mock-up, and write the HTML and CSS code for the basic design. Interactive elements and jQuery come later: for now, just get the visuals together on screen, and be sure to validate all of the code before moving on.

3. Development

Development involves the bulk of the programming work, as well as loading content (whether by your team or the client’s). Keep code organized and commented, and refer constantly to the planning details as the full website takes shape. Take a strategic approach, and avoid future hassles by constantly testing as you go.

 Build development framework. This is when unique requirements might force you to diverge from the process. If you’re using Ruby on Rails, an ASP/PHP framework or a content management system, now is the time to implement it and get the basic engine up and running. Doing this early ensures that the server can handle the installation and set-up smoothly.

 Code templates for each page type. A website usually has several pages (e.g. home, general content, blog post, form) that can be based on templates. Creating your own templates for this purpose is good practice.

 Develop and test special features and interactivity. Here’s where the fancy elements come into play. I like to take care of this before adding the static content because the website now provides a relatively clean and uncluttered workspace. Some developers like to get forms and validation up and running at this stage as well.

 Fill with content. Time for the boring part: loading all of the content provided by the client or writer. Although mundane, don’t misstep here, because even the simplest of pages demand tight typography and careful attention to detail.

 Test and verify links and functionality. This is a good time for a full website review. Using your file manager as a guide, walk through every single page you’ve created—everything from the home page to the submission confirmation page—and make sure everything is in working order and that you haven’t missed anything visually or functionally.

4. Launch

The purpose of the launch phase is to prepare the website for public viewing. This requires final polishing of design elements, deep testing of interactivity and features and, most of all, a consideration of the user experience. An important early step in this phase is to move the website, if need be, to its permanent Web server. Testing in the production environment is important because different servers can have different features and unexpected behavior (e.g. different database host addresses).  Polishing particularly if you’re not scrambling to meet the deadline, polishing a basically completed design can make a big difference. Here, you can identify parts of the website that could be improved in small ways. After all, you want to be as proud of this website as the client is.

 Transfer to live server This could mean transferring to a live Web server (although hopefully you’ve been testing in the production environment), “unhanding” the website or removing the “Under construction” page. Your last-minute review of the live website happens now. Be sure the client knows about this stage, and be sensitive to timing if the website is already popular.

 Testing Run the website through the final diagnostics using the available tools: code validates, broken-link checkers, website health checks, spell-checker and the like. You want to find any mistakes yourself rather than hearing complaints from the client or an end-user.

 Final cross-browser check (IE, Firefox, Chrome, Safari, Opera, I Phone, BlackBerry) Don’t forget to check the website in multiple browsers one last time. Just because code is valid, doesn’t mean it will sparkle with a crisp layout in IE 6.

5. Post-Launch

Business re-enters the picture at this point as you take care of all the little tasks related to closing the project. Packaging source files, providing instructions for use and any required training occurs at this time. Always leave the client as succinctly informed as possible, and try to predict any questions they may have. Don’t leave the project with a closed door; communicate that you’re available for future maintenance and are committed to ongoing support. If maintenance charges haven’t already been shared, establish them now.

 Hand off to client Be sure the client is satisfied with the product and that all contractual obligations have been met (refer to the project charter). A closed project should leave both you and the client satisfied, with no burned bridges.

 Provide documentation and source files Provide documentation for the website, such as a soft-copy site map and details on the framework and languages used. This will prevent any surprises for the client later on, and it will also be useful should they ever work with another Web developer.

 Project close, final documentation Get the client to sign off on the last checks, provide your contact information for support, and officially close the project. Maintain a relationship with the client, though; checking in a month down the road to make sure everything is going smoothly is often appreciated.

As stated, this is merely a sample process. Your version will be modified according to your client base and style of designing. Processes can also differ based on the nature of the product; for example, e-commerce websites, Web applications and digital marketing all have unique requirements. Documenting The Process

Create and retain two versions of your Web design process: One for you or your team to use as a guide as you work on the back end, and one to share with clients. The differences between the two should be intrinsically clear: yours would be much more detailed and contain technical resources to help with development; the client’s would be a concise, non-technical map of the process from start to finish.

Common tools for documenting the business process are a simple Microsoft Word document, Microsoft Visio and mind-mapping software such as Freemind. If you’re ambitious, you could even develop your own internal Web-based tool.

Using the Process

By now, you should understand what a process looks like, including the details of each phase, and have some idea of how to construct your particular Web design process. This is a great first step, but it’s still only a first step! Don’t miss this next bit: knowing how a process can enhance your overall business and how to use it when approaching and interacting with clients.

Refining the Process

The process will be different for each designer, and for each project. Develop a process for yourself, and identify whatever is useful to you or your team. Only then will the process be truly useful. After all, freelancers can serve drastically different target markets. Bulleted lists are well and good, but the process can be much more useful and elaborate than that. Many of the resources, tools and links posted on Web design blogs and Twitter feeds fit into different parts of the process. An incredibly useful way to refine the process is to add resource links to each phase, and to develop your own resources, such as branded document templates.

Some commonly used documents of freelancers:

 Client questionnaire,

 Invoice,

 Project charter,

 Documentation for hand-off to client,

 User accounts,

 Database table charts,

 Site map.

Files and Archive

Documentation and storage are important to grasp. As mundane as these tasks can be, they certainly help when tax season rolls around or when a small freelance venture begins to expand. You can never be too disciplined when it comes to efficiency in work and time. You could establish a standard document format and folder structure for all of your clients, or maintain a list or archive of previous clients and project files. You could employ anything from simple lists to all-out small-business accounting practices.

A Process Puts the Client at Ease

Many clients view Web development as a black box, even after you’ve tried to educate them on its methods. To them, they provide their requirements, suggestions and content, and then some time later a website appears or begins to take shape. They’re often completely unaware of major aspects of the process, such as the separation of design and development. Having an organized and concise process on hand can help organize a client’s thoughts and put their mind at ease, not to mention help them understand where their money is going.

Outlining my basic process as a freelancer is by far the most common first step I take with potential or new clients. A quick, high-level “This is how it works” discussion provides a framework for the entire project. Once you have this discussion, the client will better understands what specifically is needed from them, what you will be delivering at certain points in the timeline and what type of work you’ll be engaging in as you go along. Most of all, the discussion can nip any miscommunication or confusion in the bud.

Designers are often too deep into Web design to realize that most people have no idea what they do or understand their terminology or know the steps involved in creating a finished product. Starting fresh with a understandably “clueless” client can be daunting.

PRODUCTION GROUP No.2 When you choose Copper Mobile to develop your mobile application, you get a front row seat and a direct line of communication with the app development team. You will be assigned a dedicated project manager to communicate all aspects of the development process with you. Your project manager will be in constant contact with you, making sure that the mobile app is developed exactly how you envisioned it.

Mobile Application Design Process

During the app design process, you will be able to ascertain your app concept becoming a visual reality. This phase contains several elements meant to ensure that your app is developed precisely how you envisioned it. During this period, you will meet with the mobile app design team to discuss and establish the process flow and wire frame. This is essentially a rough sketch of your app, specifying what each screen is supposed to do. Once completed, the app designers will begin the UI design and app skin, where designers will turn the basic sketch and app wire frame into a full color user interface. After the design is approved, you will be presented a simulation or storyboard of the app to show how each page should look and function, along with the navigation architecture.

Process Flow Wireframe Storyboad

Mobile Application Development Process

The app development and coding phase brings your app to life. At this stage the coding team takes over and puts the nuts and bolts together to create the core functionality of the app. This can include database tables, navigation, social media integrations, GPS, and more. During the app development process the team will complete a series of alpha and beta versions of your app to ensure all functionality works as expected. Here’s an outline of our process, and of course, we can explain our process to you in greater detail when we talk on the phone or on a video conference. Discovery That’s our way of saying that we’re going to listen to you, understand the requirements and designs you’ve created by you, explore your ideas to new levels, and do some research to make sure that we know exactly what you need.

Understanding The way we see it, there’s really two parts to “understanding” your project. The first part is the discovery. The second part is to provide documentation to you that prove that we understand your requirements. We care not only about what this app does for the user, but how this app fits into your business, both short terms and long. And, we’ll put it on paper, to make perfectly sure that we understand each other… perfectly.

Improvement One of the highest values we bring to app development is our ability to translate your specifications into something greater than you’ve imagined. Some people call this “brainstorming”. We just call it “using our experience in business, marketing, and technology and programming to suggest ways to make your app perform better for your users and for your company.” Making it better is just part of what we do.

Document Prior to writing even one line of code, we document everything we will do. We start with a “wireframe” of your app’s flow and functionality. You’ll see, on paper, how your app will actually work, including every button, control, screen, message, video and sound. It will all be documented on our not-very-artful wireframe sketches of your app. (Wireframes are purposely un-beautiful, but full of functional meaning.)

Design App popularity is not only a function of how well the app works, but how great the app looks. That’s why we apply an expert graphic design to each and every app we produce. Depending on their purpose, some apps are graphics-intensive, and others should be minimalistic. Regardless of your type of app, we’ll develop an appropriate design that promotes your new or existing brand, and engage the user.

Coding

Have you noticed that we’re five steps into our process and haven’t done any coding yet? I think you’ll find that the process of building a quality app is very similar to building a quality home — the architect, interior designer, plumber, carpenter, electrician and landscaper — these professionals all make their plans long before a single board is cut or hole is dug. That’s because it’s far easier to make changes in a design than it is to make actual changes to a finished product. We have teams of expert coders both overseas and here in the USA who are all participants in

The Evolution ate App Development Process, and who will expertly code your project so that it matches perfectly to every piece of documentation we’ve produced, and every single expectation you have.

Alpha Testing No app is so simple that it can be perfect at the very start. Beyond that, we sometimes find small tweaks that can make huge improvements in usability or the functionality of an app. That’s why we test everything we build on our own extensive and we test it to make sure that it’s as good as it can possibly be. If you’ve worked with another app developer before, and they haven’t focused on testing, it’s time to find a new app developer. Testing, along with design and documentation, are as much art as science. The actual coding is easy, by comparison to thorough design and testing.

Beta Testing Our customers tend to exhibit an immense amount of pride when we get to this step. It’s often the first time they see, in real bits and pixels, the app they’ve imagined come to life. This is an opportunity for you, your associates, your family and friends (and whoever you decide) to take a look at the app and take it for a test drive. It’s an opportunity to compare, item by item, your specs for the app and the real thing. Oh, and if we happen to discover anything different between the two, we’ll go back and fix it and get you a new version to test. Our goal here isn’t to be “done” with your app, but to be “done right”. Release Releasing your app to the I Phone App Store, to Google’s Marketplace or the other app markets can be tricky, but don’t worry, we’ll do it all for you. We’ll deal with the submission of the app, the App Store testing process, uploading the app, and just about everything required to get your app ready to sell. All you need to do is what you do best: sell the heck out of your new app. (Oh, and a little Champagne on launch day is a good idea, too.)

Warranty There are two kinds of software developers in the world: Those who tell you that they’ve never written a bad line of code, and those who tell the truth. Look, there will be bugs in all software. But our development process minimizes both the number and size of these bugs so that when your app is released, it’s as perfect as possible. That said, if a bug does get through, we’ll fix it, free. That’s because we’ll extend to you a 1 year warranty from the date your app is launched. That’s plenty of time for thousands — or tens of thousands — of users to use your app. And, if we find out about anything that doesn’t match the specifications, it’s OUR responsibility. We’ll fix it.

Mobile Application Marketing

Marketing your mobile application is vital to the success of your game app, social networking app, or productivity tool. Our in-house team of mobile app marketing experts will give your mobile app the exposure that it deserves. This phase, while the most fun, is also the most crucial phase during the launch of your mobile app. There is nothing better than seeing and hearing customers and businesses using, talking about, and reviewing your app. Our marketing team is expert in website development, social media marketing, and search engine optimization. We invite you to come into one of our global offices to meet the app marketing team that will help make your app successful and profitable.

While each mobile application has its own set of unique challenges, most projects follow the basic development process outlined below. This process ensures that your project is developed on time, in budget, and within scope.

Before we even submit a proposal, we ask the proper questions to understand exactly what the app needs to do, what features need to be incorporated, and what our client’s NEED versus what they WANT.

Once we have an understanding of your app, we provide a detailed proposal, outlining exactly what needs to be built, and what responsibilities we have. One of CHERRY TECHNOLOGIES’s advantages is our firm, fixed pricing. The proposal that you receive is what will be billed, barring any major changes to the project’s scope. PRODUCTION GROUP No.3

ERP software development

Cherry Technologies Company developing in-house ERP system software conducts a detailed cost benefit study before initiating the ERP software product ORGANIZATION development process. Companies whose business processes are unique are best suited to undertake in-house ERP software development. The biggest advantage of developing ERP software in-house is that the company retains full ownership rights of the source code and the knowledge gained. By having an in-house team, companies will have flexibility in customizing the software as and when they think the time is right. A major requirement of developing an in-house ERP software is that the company needs to have a core team which is experienced in executing such ERP projects. The core team should have a long term requirements of software in mind before planning the ERP software. The team should also have a thorough understanding of the business processes of the company and should be proficient in designing a software system based on latest technology.

Manufacturing FINANCE Department DEPARTMENT Functions: Functions: Manufacture of Managing finance and products, creation of accounting functions BOM, monitoring of of the company, work orders and interacting with completion financial institutions. SALE INVENTORY DEPARTMENT DEPARTMENT Functions: Functions: Booking of orders, Stocking of all marketing company’s materials and issue products and dispatch of materials

PURCHASE DEPARTMENT Functions Purchase of materials from vendors, vendor management, monitoring payment etc

By developing the software in-house, companies will have the freedom in choosing the software’s such as databases, front end tools and report writers. The satisfaction levels among programmers who have developed ERP in-house system software are much higher and sense of belonging is more. Such motivated IT teams contribute greatly towards a company's competitive advantage.

In-house ERP software development can lead to a competitive advantage as companies are free to make decisions related to their software systems. In contrast, when a vendor is hired to install a ERP software, decisions related to software need participation from the vendor also which may lead to delays and uncertainties.

How shall we go about developing an ERP software for in-house use? Which technology to choose and what is that technology and where does it fit in and is used in the ERP software development process, are few of the questions which should be answered by the IT team. In this page we will discuss the technologies used in developing an ERP software. Links to the relevant articles are also given. The first issue to be tackled is the platform on which we will develop the ERP software and host it.

Platform suited for Creating an ERP Software .Net platform is the most widely used platform given the number of windows machines used worldwide. Let us assume that the .Net is our platform and all the following discussion is based on this assumption. Why did we choose.Net ? Because, it offers the following advantage. .Net is a new layer of software that sits over the familiar Windows operating system. This insulates computer users from the operating system and makes applications more efficient. Let us now list the major features of .net technology. Managed code .Net offers many tools and components that can be used to write managed code. Managed code is better because software errors are identified and stopped before systems crash. .Net ensures that we do not encounter memory leaks while using software. Security .Net enforces a new system of supervision. Hackers will find it difficult to break through the .net security model. Connectivity .Net development tools make it easier to develop ERP software’s by providing connectivity techniques such as XML web services. This is vital because ERP software’s will be distributed, collaborative and networked systems which communicate constantly. Building an ERP system for such environments is much easier with .net technologies.

Faster and easier software development

.Net allows developers to develop software systems, much easier by offering RAD tools. These tools have excellent programming and debugging features which allows development of better software. Applications developed using these tools run faster as the code is managed by the .net runtime system.

Scalability ERP software’s require continues up-gradations which mean constant addition of new technologies and features. .Net allows this, as improvements in .net frame work are instantly available to the upgraded ERP software. This allows better scalability.

HR DEPARTMENT

Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world. As Edward L. Gubman observed in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change."

Until fairly recently, an organization's human resources department was often consigned to lower rungs of the corporate hierarchy, despite the fact that its mandate is to replenish and nourish what is often cited—legitimately—as an organization's greatest resource, it's work force. But in recent years recognition of the importance of human resources management to a company's overall health has grown dramatically. This recognition of the importance of HRM extends to small businesses, for while they do not generally have the same volume of human resources requirements as do larger organizations, they too face personnel management issues that can have a decisive impact on business health. As Irving Burstiner commented in The Small Business Handbook, "Hiring the right people— and training them well—can often mean the difference between scratching out the barest of livelihoods and steady business growth'. Personnel problems do not discriminate between small and big business. You find them in all businesses, regardless of size."

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT Business consultants note that modern human resource management is guided by several overriding principles. Perhaps the paramount principle is a simple recognition that human resources are the most important assets of an organization; a business cannot be successful without effectively managing this resource. Another important principle, articulated by Michael Armstrong in his book A Handbook of Human Resource Management, is that business success "is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans." A third guiding principle, similar in scope, holds that it is the HR's responsibility to find, secure, guide, and develop employees whose talents and desires are compatible with the operating needs and future goals of the company. Other HRM factors that shape corporate culture—whether by encouraging integration and cooperation across the company, instituting quantitative performance measurements, or taking some other action—are also commonly cited as key components in business success. HRM summarized Armstrong, "is a strategic approach to the acquisition, motivation, development and management of the organization's human resources. It is devoted to shaping an appropriate corporate culture, and introducing programs which reflect and support the core values of the enterprise and ensure its success."

POSITION AND STRUCTURE OF HUMAN RESOURCE MANAGEMENT Human resource department responsibilities can be subdivided into three areas: individual, organizational, and career. Individual management entails helping employees identify their strengths and weaknesses; correct their shortcomings; and make their best contribution to the enterprise. These duties are carried out through a variety of activities such as performance reviews, training, and testing. Organizational development, meanwhile, focuses on fostering a successful system that maximizes human (and other) resources as part of larger business strategies. This important duty also includes the creation and maintenance of a change program, which allows the organization to respond to evolving outside and internal influences. Finally, there is the responsibility of managing career development. This entails matching individuals with the most suitable jobs and career paths within the organization. Human resource management functions are ideally positioned near the theoretic center of the organization, with access to all areas of the business. Since the HRM department or manager is charged with managing the productivity and development of workers at all levels, human resource personnel should have access to—and the support of—key decision makers. In addition, the HRM department should be situated in such a way that it is able to communicate effectively with all areas of the company.

HRM structures vary widely from business to business, shaped by the type, size, and governing philosophies of the organization that they serve. But most organizations organize HRM functions around the clusters of people to be helped— they conduct recruiting, administrative, and other duties in a central location. Different employee development groups for each department are necessary to train and develop employees in specialized areas, such as sales, engineering, marketing, or executive education. In contrast, some HRM departments are completely independent and are organized purely by function. The same training department, for example, serves all divisions of the organization.

In recent years, however, observers have cited a decided trend toward fundamental reassessments of human resources structures and positions. "A cascade of changing business conditions, changing organizational structures, and changing leadership has been forcing human resource departments to alter their perspectives on their role and function almost overnight," wrote John Johnston in Business Quarterly. "Previously, companies structured themselves on a centralized and compartmentalized basis—head office, marketing, manufacturing, shipping, etc. They now seek to decentralize and to integrate their operations, developing cross- functional teams'. Today, senior management expects HR to move beyond its traditional, compartmentalized 'bunker' approach to a more integrated, decentralized support function." Given this change in expectations, Johnston noted that "an increasingly common trend in human resources is to decentralize the HR function and make it accountable to specific line management. This increases the likelihood that HR is viewed and included as an integral part of the business process, similar to its marketing, finance, and operations counterparts. However, HR will retain a centralized functional relationship in areas where specialized expertise is truly required," such as compensation and recruitment responsibilities.

HUMAN RESOURCE MANAGEMENT— KEY RESPONSIBILITIES Human resource management is concerned with the development of both individuals and the organization in which they operate. HRM, then, is engaged not only in securing and developing the talents of individual workers, but also in implementing programs that enhance communication and cooperation between those individual workers in order to nurture organizational development.

The primary responsibilities associated with human resource management include: job analysis and staffing, organization and utilization of work force, measurement and appraisal of work force performance, implementation of reward systems for employees, professional development of workers, and maintenance of work force.

Job analysis consists of determining—often with the help of other company areas— the nature and responsibilities of various employment positions. This can encompass determination of the skills and experiences necessary to adequately perform in a position, identification of job and industry trends, and anticipation of future employment levels and skill requirements. "Job analysis is the cornerstone of HRM practice because it provides valid information about jobs that is used to hire and promote people, establish wages, determine training needs, and make other important HRM decisions," stated Thomas S. Bateman and Carl P. Zenithal in Management: Function and Strategy. Staffing, meanwhile, is the actual process of managing the flow of personnel into, within (through transfers and promotions), and out of an organization. Once the recruiting part of the staffing process has been completed, selection is accomplished through job postings, interviews, reference checks, testing, and other tools.

Organization, utilization, and maintenance of a company's work force is another key function of HRM. This involves designing an organizational framework that makes maximum use of an enterprise's human resources and establishing systems of communication that help the organization operate in a unified manner. Other responsibilities in this area include safety and health and worker-management relations. Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace. These regulations are handed down from several federal agencies, including the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA), and various state agencies, which implement laws in the realms of worker's compensation, employee protection, and other areas. Maintenance tasks related to worker-management relations primarily entail: working with labor unions; handling grievances related to misconduct, such as theft or sexual harassment; and devising communication systems to foster cooperation and a shared sense of mission among employees.

Performance appraisal is the practice of assessing employee job performance and providing feedback to those employees about both positive and negative aspects of their performance. Performance measurements are very important both for the organization and the individual, for they are the primary data used in determining salary increases, promotions, and, in the case of workers who perform unsatisfactorily, dismissal. Reward systems are typically managed by HR areas as well. This aspect of human resource management is very important, for it is the mechanism by which organizations provide their workers with rewards for past achievements and incentives for high performance in the future. It is also the mechanism by which organizations address problems within their work force, through institution of disciplinary measures. Aligning the work force with company goals, stated Gubman, "requires offering workers an employment relationship that motivates them to take ownership of the business plan."

Employee development and training is another vital responsibility of HR personnel. HR is responsible for researching an organization's training needs, and for initiating and evaluating employee development programs designed to address those needs. These training programs can range from orientation programs, which are designed to acclimate new hires to the company, to ambitious education programs intended to familiarize workers with a new software system.

"After getting the right talent into the organization," wrote Gubman, "the second traditional challenge to human resources is to align the workforce with the business —to constantly build the capacity of the workforce to execute the business plan." This is done through performance appraisals, training, and other activities. In the realm of performance appraisal, HRM professionals must devise uniform appraisal standards, develop review techniques, train managers to administer the appraisals, and then evaluate and follow up on the effectiveness of performance reviews. They must also tie the appraisal process into compensation and incentive strategies, and work to ensure that federal regulations are observed.

Responsibilities associated with training and development activities, meanwhile, include the determination, design, execution, and analysis of educational programs. The HRM professional should be aware of the fundamentals of learning and motivation, and must carefully design and monitor training and development programs that benefit the overall organization as well as the individual. The importance of this aspect of a business's operation can hardly be overstated. As Roberts, Seldon, and Roberts indicated in Human Resources Management, "The quality of employees and their development through training and education are major factors in determining long-term profitability of a small business'. Research has shown specific benefits that a small business receives from training and developing its workers, including: increased productivity; reduced employee turnover; increased efficiency resulting in financial gains; and decreased need for supervision."

Meaningful contributions to business processes are increasingly recognized as within the purview of active human resource management practices. Of course, human resource managers have always contributed to overall business processes in certain respects—by disseminating guidelines for and monitoring employee behavior, for instance, or ensuring that the organization is obeying worker-related regulatory guidelines. Now, increasing numbers of businesses are incorporating human resource managers into other business processes as well. In the past, human resource managers were cast in a support role in which their thoughts on cost/benefit justifications and other operational aspects of the business were rarely solicited. But as Johnston noted, the changing character of business structures and the marketplace are making it increasingly necessary for business owners and executives to pay greater attention to the human resource aspects of operation: "Tasks that were once neatly slotted into well-defined and narrow job descriptions have given way to broad job descriptions or role definitions. In some cases, completely new work relationships have developed; telecommuting, permanent part-time roles and outsourcing major non-strategic functions are becoming more frequent." All of these changes, which human resource managers are heavily involved in, are important factors in shaping business performance.

THE CHANGING FIELD OF HUMAN RESOURCE MANAGEMENT In recent years, several business trends have had a significant impact on the broad field of HRM. Chief among them was new technologies. These new technologies, particularly in the areas of electronic communication and information dissemination and retrieval, have dramatically altered the business landscape. Satellite communications, computers and networking systems, fax machines, and other devices have all facilitated change in the ways in which businesses interact with each other and their workers. Telecommuting, for instance, has become a very popular option for many workers, and HRM professionals have had to develop new guidelines for this emerging subset of employees.

Changes in organizational structure have also influenced the changing face of human resource management. Continued erosion in manufacturing industries in the United States and other nations, coupled with the rise in service industries in those countries, have changed the workplace, as has the decline in union representation in many industries (these two trends, in fact, are commonly viewed as interrelated). In addition, organizational philosophies have undergone change. Many companies have scrapped or adjusted their traditional, hierarchical organizational structures in favor of flatter management structures. HRM experts note that this shift in responsibility brought with it a need to reassess job descriptions, appraisal systems, and other elements of personnel management.

A third change factor has been accelerating market globalization. This phenomenon has served to increase competition for both customers and jobs. The latter development enabled some businesses to demand higher performances from their employees while holding the line on compensation. Other factors that have changed the nature of HRM in recent years include new management and operational theories like Total Quality Management (TQM), rapidly changing demographics, and changes in health insurance and federal and state employment legislation.

SMALL BUSINESS AND HUMAN RESOURCE MANAGEMENT A small business's human resource management needs are not of the same size or complexity of those of a large firm. Nonetheless, even a business that carries only two or three employees faces important personnel management issues. Indeed, the stakes are very high in the world of small business when it comes to employee recruitment and management. No business wants an employee who is lazy or incompetent or dishonest. But a small business with a work force of half a dozen people will be hurt far more by such an employee than will a company with a work force that numbers in the hundreds (or thousands). Nonetheless, "most small business employers have no formal training in how to make hiring decisions," noted Jill A. Rossiter in Human Resources: Mastering Your Small Business. "Most have no real sense of the time it takes nor the costs involved. All they know is that they need help in the form of a 'good' sales manager, a 'good' secretary, a 'good' welder, and so on. And they know they need someone they can work with, who is willing to put in the time to learn the business and do the job. It sounds simple, but it isn't."

Before hiring a new employee, the small business owner should weigh several considerations. The first step the small business owner should take when pondering an expansion of employee payroll is to honestly assess the status of the organization itself. Are current employees being utilized appropriately? Are current production methods effective? Can the needs of the business be met through an arrangement with an outside contractor or some other means? Are you, as the owner, spending your time appropriately? As Rossiter noted, "any personnel change should be considered an opportunity for rethinking your organizational structure." Small businesses also need to match the talents of prospective employees with the company's needs. Efforts to manage this can be accomplished in a much more effective fashion if the small business owner devotes energy to defining the job and actively taking part in the recruitment process. But the human resource management task does not end with the creation of a detailed job description and the selection of a suitable employee. Indeed, the hiring process marks the beginning of HRM for the small business owner.

Small business consultants strongly urge even the most modest of business enterprises to implement and document policies regarding human resource issues. "Few small enterprises can afford even a fledgling personnel department during the first few years of business operation," acknowledged Burstiner. "Nevertheless, a large mass of personnel forms and data generally accumulates rather rapidly from the very beginning. To hold problems to a minimum, specific personnel policies should be established as early as possible. These become useful guides in all areas: recruitment and selection, compensation plan and employee benefits, training, promotions and terminations, and the like." Depending on the nature of the business enterprise (and the owner's own comfort zone), the owner can even involve his employees in this endeavor. In any case, a carefully considered employee handbook or personnel manual can be an invaluable tool in ensuring that the small business owner and his or her employees are on the same page. Moreover, a written record can lend a small business some protection in the event that its management or operating procedures are questioned in the legal arena.

Some small business owners also need to consider training and other development needs in managing their enterprise's employees. The need for such educational supplements can range dramatically. A bakery owner, for instance, may not need to devote much of his resources to employee training, but a firm that provides electrical wiring services to commercial clients may need to implement a system of continuing education for its workers in order to remain viable.

Finally, the small business owner needs to establish and maintain a productive working atmosphere for his or her work force. Employees are far more likely to be productive assets to your company if they feel that they are treated fairly. The small business owner who clearly communicates personal expectations and company goals, provides adequate compensation, offers meaningful opportunities for career advancement, anticipates work force training and developmental needs, and provides meaningful feedback to his or her employees is far more likely to be successful than the owner who is neglectful in any of these areas

Recruitment

 As Keith Hammonds, deputy editor of "Fast Company" magazine says, "In a knowledge economy, companies with the best talent win." High tech firms rely on a knowledge-intensive workforce. The talent market in information technology (IT) can be competitive, with specialty skills in programming and design in short supply. To attract the best candidates, HR managers must develop a comfort zone with recruiting tools such as social media---online networking, video postings, blogs and "tweets." HR managers in startup companies must understand the mindset needed for technical jobs. Product development takes place under a team environment, making the ability to collaborate, work under pressure and adapt to change critical candidate skills.

Immigration

 Software and other high tech companies often turn to the international labor market to fill vacant slots. HR managers have to immerse themselves in immigration law and work with immigration attorneys to sponsor temporary work visas, such as the H-1B used for professional foreign nationals. Sometimes permanent residency is offered. Proper documentation must be kept for the firm to be in compliance and pass any unannounced inspections conducted by the U.S. Immigration and Naturalization Service. Hiring foreign nationals also requires a human resource department to prepare acclimation programs to ease a new employee's transition into American life.

Retention

 Software companies find themselves vulnerable when a team employee leaves, putting deadlines, competitive advantage and profitability at risk. HR management must have succession plans in place to help manage this risk. A skills inventory of all players identifies internal candidates that can be tapped immediately for openings. Software company HR departments also use it as the foundation for employee career planning and training programs. "Software Magazine" confirms the value of strong training programs within the industry: An ability to maintain skills at a competitive level is cited as the first reason employees remain with a particular firm.

Culture

 Software company HR departments oversee a culture that is distinct from that found in a consumer goods firm. A casual atmosphere with long hours and low bureaucracy rule. Maintaining work/life balance takes on added importance and requires monitoring by HR as, according to Forte Consulting's Liisa Pursiheimo-Marcks, a changing generational talent mix, competition for talent and the need for innovation force companies to seek more diversity. "The high tech companies that find the key to the hearts and minds of their employees gain sustainable competitive advantage." Size

 In most cases, a small software company only has one or two human resources professionals within the organization who handle all aspects of human resources. This is referred to as a human resources generalist.

Function

 Hiring, training and maintaining employees includes assisting top executives to create organizational structure and policies, developing employee incentive and benefit plans and finding resources to attract employees to the organization.

Recruitment

 All software companies have a need to attract and maintain information technology professionals with knowledge and skills pertaining to emerging technologies. The Bureau of Labor Statistics reports a continuing increase for these professionals. A small software company experiences keen competition from larger organizations to attract these types of employees. HR plays a critical role in creating recruitment strategies to attract high-demand information technology professionals.

MARKETING DEAPRTMENT REASERCH

There are two main types of market research: Quantitative research involves collecting a lot of information by using techniques such as questionnaires and other forms of survey. Qualitative research involves working with smaller samples of consumers, often asking them to discuss products and services while researchers take notes about what they have to say. The marketing department will usually combine both forms of research.

The marketing department will seek to make sure that the company has a marketing focus in everything that it does. It will work very closely with production to make sure that new and existing product development is tied in closely with the needs and expectations of customers.

Modern market focused organizations will seek to find out what their customers want. For example, financial service organizations will want to find out about what sort of accounts customers want to open and the standard of service they expect to get. Retailers like Argos and Home base will seek to find out about customer preferences for store layouts and the range of goods on offer. Airlines will find out about the levels of comfort that customer’s desire and the special treatment that they prefer to receive.

A useful definition of marketing is the anticipation and identification of customer needs and requirements so as to be able to meet them, make a profit or achieve other key organizational objectives.

FINANCIAL DEPARTMENT STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES  Financial statement has been prepared on a historical cost basis  All depreciable fixed assets have been stated at original cost less depreciation.

 No provision is made for total accrued liability towards gratuity as at the end of the year

 Bonus is expended in the year of payment

 Inventories are valued at cost or market price whichever is lower

 All the expenses and incomes are recognized as and when incurred or earned

 The method of accounting is on the basis of going concern concept

OUTSOURCING‘S BENEFITS AND RISKS IN FINANCIAL MANAGEMENT The most often discussed advantages of outsourcing are connected with improved financial performance and various nonfinancial performance effects, such as a heightened focus on core competencies. These and other most frequently cited benefits of outsourcing are  Reduced overheads and operational costs

 Possibility of converting fixed costs into variable costs

 Price competitiveness

 Lower involvement (freezing) of capital  The ability to spread commercial risk

 Higher flexibility oe the ability to meet fluctuations in demand

 Easier and more economic access to the latest technologies

 Improved quality

 Possibility of concentrating on firm„s core business

 Improvement of measurability of costs

 Better control of internal departments

 Availability of new service options, and reduced capital commitment

 Access to external competencies

 Acquisition of specialist expertise

 Improved cost control

Many believe that if these expected benefits are realized, outsourcing will remain one of the strongest and most sustained trends in business over the next ten years. Despite its many advantages, outsourcing involves considerable risks. A firm using outsourcing inevitably loses some control over its future, which is to some degree given over into the hands of another firm, whose primary motivation (one should bear in mind) is the maximization of its own. SYSTEM DEPARTMENTS Information technology (IT) has become a vital and integral part of every business plan. From multi-national corporations who maintain mainframe systems and databases to small businesses that own a single computer, IT plays a role. The reasons for the omnipresent use of computer technology in business can best be determined by looking at how it is being used across the business world. Communication For many companies, email is the principal means of communication between employees, suppliers and customers. Email was one of the early drivers of the Internet, providing a simple and inexpensive means to communicate. Over the years, a number of other communications tools have also evolved, allowing staff to communicate using live chat systems, online meeting tools and video-conferencing systems. Voice over internet protocol (VOIP) telephones and smart-phones offer even more high-tech ways for employees to communicate. Inventory Management When it comes to managing inventory, organizations need to maintain enough stock to meet demand without investing in more than they require. Inventory management systems track the quantity of each item a company maintains, triggering an order of additional stock when the quantities fall below a pre-determined amount. These systems are best used when the inventory management system is connected to the point-of-sale (POS) system. The POS system ensures that each time an item is sold, one of that item is removed from the inventory count, creating a closed information loop between all departments.

Data Management The days of large file rooms, rows of filing cabinets and the mailing of documents is fading fast. Today, most companies store digital versions of documents on servers and storage devices. These documents become instantly available to everyone in the company, regardless of their geographical location. Companies are able to store and maintain a tremendous amount of historical data economically, and employees benefit from immediate access to the documents they need. Management Information Systems Storing data is only a benefit if that data can be used effectively. Progressive companies use that data as part of their strategic planning process as well as the tactical execution of that strategy. Management Information Systems (MIS) enable companies to track sales data, expenses and productivity levels. The information can be used to track profitability over time, maximize return on investment and identify areas of improvement. Managers can track sales on a daily basis, allowing them to immediately react to lower-than-expected numbers by boosting employee productivity or reducing the cost of an item. Customer Relationship Management Companies are using IT to improve the way they design and manage customer relationships. Customer Relationship Management (CRM) systems capture every interaction a company has with a customer, so that a more enriching experience is possible. If a customer calls a call center with an issue, the customer support representative will be able to see what the customer has purchased, view shipping information, call up the training manual for that item and effectively respond to the issue. The entire interaction is stored in the CRM system, ready to be recalled if the customer calls again. The customer has a better, more focused experience and the company benefits from improved productivity.

CHAPTER IV

ANALYSIS AND INTERPRETATION

TABLE-1 AGE DISTRIBUTION OF SOFTWARE DEVELOPMENTSCHEME USERS Age limit No.of. respondents Percentage (%)

Below 19 18 12.9%

20-40 86 61.4%

40-60 28 20%

60-80 8 5.7%

Total 140 100%

Source: primary data

Interpretation

Majority of the software development phone users (61.4%) are in the age group of 20-40 years. Followed by that 20 percent are in the age group of 40-60 years, 12.9% of user’s age is below 19 and remaining 5.7% users are aged above 60 years

Average The average age of prepaid customers in Chennai is 33.7 years (or) 34 years

CHART - 1 TABLE – 2 EDUCATIONAL BACKGROUND OF SOFTWATE PURCHASING

Educational No.of. respondents Percentage (%) qualification

Primary - -

Secondary 2 1.4%

Higher secondary 36 25.7%

Under graduate 64 45.7%

Post graduate 34 24.3%

Illiterate 4 2.9% Total 140 100%

Source: Primary data

Interpretation

Majority (45.7%) of the software development phone have completed under graduate followed by that 25.7% of users have done only Secondary Level schooling, 24.3% of users have completed Post graduate and the remaining 2.9% and 1.4% of software development phone users represent Illiteracy and secondary level schooling respectively.

CHART – 2 TABLE 3 OCCUPATIONAL BACKGROUND OF SOFTWATE PURCHASING

OCCUPATION NO.OF. PERCENTAGE (%) RESPONDENTS

Business 44 31.4%

Government employee 10 7.1%

Private employee 14 10%

House wife 6 4.3%

Professional 30 21.4%

Student 36 25.8%

Total 140 100%

Source: Primary data

Interpretation Majority (31.4) of mobile phone users are business people followed by that 25.7% users are students, 21.4% of users are professionals, 10% represent private employees, 7.1% represent government employees & remaining 4.3% of users are home makers.

CHART - 3

TABLE 4 MONTHLY HOUSE HOLD INCOME OF SOFTWATE PURCHASING Monthly House Hold No.of. respondents Percentage (%) Income

Less than rs.5000 44 31.4%

15000-30000 50 35.7%

30000-45000 28 20%

45000-60000 18 12.9%

Total 140 100%

Source: Primary data

Interpretation

35.7% of software development are earning Rs.15000-30000 per month, 31.4% are earning Less than Rs.15000 per month, 20% of users are earning 30,000 – 45000 per month and remaining 12.9% of them are earning more than Rs.50,000 per month.

The Average house hold monthly Income of software development is Rs.24643.

CHART - 4 TABLE 5

MATRIAL STATUS OF SOFTWATE PURCHASING

MATERIAL NO.OF. PERCENTAGE (%) STATUS RESPONDENTS

Single 68 48.6%

Married 72 51.4%

Widow - - Total 140 100%

Source: Primary data

Interpretation

Majority (51.4%) of the software development are married and the remaining 48.6% mobile users are single.

CHART - 5

MATRIAL STATUS OF SOFTWATE PURCHASING MARITAL STATUS

73 72 72

71

70 No.of Respondents

69 68 68

67

66 SINGLE MARRIED

TABLE -6

NUMBER OF CHILDREN OF SOFTWATE PURCHASING

No. of children No.of. respondents Percentage (%)

1-2 10 13.8%

2-3 18 25%

Morethan3 6 8.33%

Nil 38 52.77%

Total 72 100% Source: Primary data

Interpretation

Majority (52.77%) of software development have no children, 25% of users have 2- 3 children, 13.8% have one child and the remaining 8.33% of software development have more than 3 children.

CHART – 6

NUMBER OF CHILDREN OF SOFTWATE PURCHASING s

t NUMBER OF CHILDREN OF PREPAID MOBILE USERS n e d

n 40 o p

s 35 e R

30 f o . 25 o N 20 38 15

10 18 5 10 6 0 1-2 2-3 MORETHAN3 NIL NO. OF CHILDREN TABLE 7

FAMILY STRUCTURE OF SOFTWARE DEVELOPMENTPHONE USERS

Family Structure No.of. respondents Percentage (%)

Joint family system 36 25.7%

Nuclear family system 104 74.3%

Total 140 100%

Source: Primary data

Interpretation

Majority (74.3%) of the software development are following Nuclear Family System and the remaining 25.7% of users are following joined Family system. CHART - 7 TABLE 8

RECOLLECTION OF SOFTWARE DEVELOPMENTPHONE SCHEME ADVERTISEMENT

Do you remember this No.of. respondents Percentage (%) advertisement

Don’t remember at all 20 14.3%

Remember company but 54 38.6% not product or advertisement

Remember company and 66 47.1% advertisement

Total 140 100% Source: Primary data

Iterpretation It is found that majority (47.1%) of respondents remember the company and the advertisement of the software development phone scheme, 38.6% of the respondents can recognized the company and not the advertisement, and the remaining 14.3% don’t remember the advertisement at all.

CHART - 8 TABLE: 9 WEIGHTED AVERAGE Motivating power of advertisement

No Rating Weight No.of. Weighted respondents total

1 Not at all 1 8 8 motivating 2 Not motivating 2 20 40 3 Neutral 3 48 144 4 Motivating 4 34 136 5 Extremely 5 30 150 motivating Total 140 478 Source: Primary 1. Not at all motivating data 2. Not motivating 3. Neutral Weighted 4. Motivating Average = 478/140 5. Extremely motivating = 3.41

INTERPRETATION (3.41)

1 2 3 4 5

The weighted average value for the motivating effectiveness of CHERRYTECH advertisement for prepaid scheme is somewhat nearer to the “Motivating” and not exactly motivating the customers to buy the prepaid scheme.

TABLE: 10

REASON FOR MOTIVATION

Sl. Reason No.of. Percentage No respondents (%)

1 Scheme is economical 84 60% 2 Free SMS facility 34 24.29% 3 Attractive ‘add – on’ 22 facility 15.71% Total 140 100%

Source: Primary data

Iterpretation

Majority (60%) of the software development phone users are motivated to by scheme, as it is economical (24.29%) of software development phone users are motivated because of 3000 free SMS facility remaining (15.71%) of prepaid users are motivated because of 5’member ‘add – on’ facility .

CHART - 10 REASON FOR MOTIVATION s t n

e 90 d

n 80 o

p 70 s e 60 R

f 50 o

. 40 84 o

N 30 20 34 10 22 0 Scheme is economical Free SMS facility Attractive ‘add – on’ facility Reason TABLE: 11

MAIN MESSAGE OF THE ADVERTISEMENT

No.of. S. no Main message Percentage (%) respondents 1 Low call cost 90 64.29% 2 Free SMS 33 23.57% 3 Add – on facility 17 12.14% Total 140 100%

Source: Primary data

Interpretation

Majority (64.29%) of the respondents have said that’ low call cost’ is the main message of the advertisement followed by that (23.57%) of respondents has said that main message of the advertisement is ‘free sms‘, remaining (12.14%) of the respondents feels that the main message of the advertisement is the ‘add – on’ facility. CHART - 11 TABLE: 12

MOST ATTRACTIVE BENEFITS OF THE ADVERTISEMENT

S.no Most attractive No.of. Percentage (%) benefits respondents 1 35 25% Lowest call rate 2 3000 free SMS per 27 19.3% month 3 25 paise per call rate 28 20%

4 Night calling STD at 18 12.8% rupee 1 per call 5 Affordable recharge 13 9.3% for Rs.30 6 Use for family by 19 13.6% utilizing add – on facility Total 140 100%

Source: Primary data Interpretation

Majority of (25%) of prepaid scheme mobile phone users are attracted by lowest call rate than (20%) of prepaid scheme mobile phone users are attracted by 25 paise per call rate with add – on 5 numbers and (19.3%) of mobile phone users are attracted by 3000 free SMS per month followed by that (13.6%) of prepaid scheme mobile phone users are using add – on facility with friend and family members then (12.8%) of users are attracted by night calling system remaining (9.3%) of users are attracted by affordable recharge for Rs.30

CHART - 12 TABLE: 13 RESPONDENTS ASSOCIATES ON WITH THE PREPAID SCHEME ADVERTISEMENT

You Think is most No.of respondents Percentage (%) closely associate with the advertisement

Achievement and 20 14.2% success

Living active and full 42 30% life

Making smart choices 78 55.8%

Total 140 100% Source: Primary data

INTERPRETATION

55.8% of the Respondents felt that buying this scheme is a smart choice, 30% of the Respondents felt that buying this scheme makes them to follow an active and Full life and remaining 14.2% of the respondents associate the advertisement with achievement & success. CHART - 13

Respondents associates on with the prepaid scheme s t

n advertisement e d n

o 90 p s

e 80 R

70 f o

. 60 o

N 50 40 78 30 20 42 10 20 0 Achivement and success Living active and full life Making smart choices Most closely associate with the Advertisement TABLE: 14

PREPAID SCHEME ADVERTISEMENT DESCRIPTION How do you describe this No.of respondents Percentage (%) advertisement

Attention getting 6 4.3%

Boring - -

Cheerful - -

Creative 12 8.6%

Satsfying 30 21.4%

Emotional 2 1.4%

Informative 36 25.7%

Warm & welcoming 30 21.4%

Honest 8 5.7%

Genuine/sincere 8 5.7%

Strong - -

Energetic - -

Pleasant 4 2.9%

Offensive - -

Natural - -

Memorable

Unique - - INTERPRETATION 25.7% of the respondents described the advertisement has ‘informative’, 21.4% described it both ‘satisfying’,CHART and warm - 14 – welcoming’, 8.6%of the Respondents described it as a creative advertisement. 5.7% described it honest and genuine, 4.3% of the respondents described it has ‘attention getting’, but 2.9% of the Represents described the advertisement is both ‘pleasant and irritating’. PREPAID SCHEME ADVERTISEMENT DESCRIPTION

160 140 120 NO. OF 100 RESPONDENCE 80 60 PERCENTAGE (%) 40 20 0 TABLE: 15

OPINION OF THE ADVERTISEMENT

Rating Weight Opinion statement 1 2 3 4 5 Strongly 5 650 540 410 350 290 agree Agree 4 32 72 104 128 176 Neutral 3 - 42 54 30 48 Disagree 2 4 - 28 20 40 Strongly 1 - - - 14 2 disagree Total 686 654 596 542 556 Weighted 686/14 654/140 596/14 542/14 556/14 average 0 = 4.7 0 0 0 = 4.9 = 4.3 = 3.9 = 3.9

Source: Primary data INTERPRETATION FOR OPINION STATEMENT

15.1 The advertisement is understandable

(4.9)

1 2 3 4 5

INTERPRETATION

Weighted average measure for “the advertisement message understandable, “ is 4.9 which means respondents strongly agree that message the advertisement is clearly understandable.

15.2 The advertisement is believable

(4.7)

1 2 3 4 5 INTERPRETATION

Weighted average measure for “the advertisement message is believable, “ is 4.7 which means respondents strongly agree that message in the advertisement is believable.

15.3. The advertisement’s message is relevant to me

(4.3)

1 2 3 4 5

INTERPRETATION

Weighted average measure for “the advertisement message relevance, “ is 4.3 which means that respondents somewhat agree that advertisement message is relevant to them.

15.4. The benefits described in the advertisement are attractive me

(3.9)

1 2 3 4 5

INTERPRETATION Weighted average measure for “the advertisement message attractiveness, “is 3.9 which means that respondents feel somewhat agree that advertisement contains attractive benefits about the prepaid scheme.

15.5. After viewing this advertisement I would consider purchasing the scheme

(3.9)

1 2 3 4 5

INTERPRETATION

Weighted average measure for “intent to purchase, “is 3.9 which means that respondents somewhat agree that they would consider purchasing the prepaid scheme. CHAPTER-V

6.1. FINDINGS

1) Majority of the software development phone users (61.4%) are in the age group of 20-40 years. The average age of prepaid customers in CHENNAI is 33.7 years (or) 34 years

2) Majority (45.7%) of the software development phone users have completed under graduate

3) Majority (31.4%) of mobile phone users are business people.

4) (35.7%) of software development are earning Rs.15000-30000 per month The Average house hold monthly income of software development is rs.24643.

5) Majority (51.4%) of the software development are married.

6) Majority (52.77%) of software development have no children.

7) Majority (74.3%) of the software development are following Nuclear Family System

II) Effectiveness of CHERRYTECH’s ‘Mega Super Plan’ Print Advertisement

1) It is found that majority (47.1%) of respondents remember the company

2) The weighted average value for the motivating effectiveness of cherry tech advertisement for prepaid scheme is somewhat nearer to the “Motivating” is not exactly motivating the customers to buy the prepaid scheme. 3) Majority (60%) of the software development phone users are motivated to buy the scheme

4) Majority (64.29%) of the respondents have said that ‘low call cost’ is the main message of the advertisement

5) Majority of (25%) of prepaid scheme mobile phone users are attracted by lowest call rate

6) 55.8% of the Respondents felt that buying this scheme is a smart choice

7) 25.7% of the respondents described the advertisement has ‘Informative’

8) Weighted average measure for “The Advertisement Message Understandable“ is 4.9 which means respondents strongly agree that message the advertisement is clearly understandable.

III) Hypothesis Findings

1) H1: more than 50% of the respondents remember both the company and the advertisement

2) H2: more than 50% of the respondents feel that the advertisement is motivating them to buy the prepaid scheme

3) H3: more than 50% of the respondents feel that the advertisement is closely associated with making a smart choice.

4) H4: more than 25% of the respondents feel that the advertisement is informative

5) H5: more than 50% of the respondents strongly consider purchasing the prepaid scheme after viewing the advertisement

6.3 SUGGESTIONS:

Following suggestions are put forward to the marketing department of cherry tech, chennai Software Industries for the betterment of the print advertisement of the software development scheme: 1. The print advertisement can be made more colorful and attractive.

2. The print advertisement can be published repeatedly at least one week before

the launch of a prepaid scheme.

3. Advertisement to be made in regular interval to remind the customers about

the scheme and its benefits.

4. Regular feedback can be obtained from the already existing customers and

prospective customers to measure the success of the print advertising.

6.2. CONCLUSION

It is found that majority of respondents remember the company cherrytech. The weighted average value for the motivating effectiveness of cherrytech advertisement for prepaid scheme is somewhat nearer to the “Motivating” is not exactly motivating the customers to buy the prepaid scheme. Majority respondents have said that ‘low call cost’ is the main message of the advertisement and are attracted towards lowest call rate. Most of them have felt that buying this scheme is a smart choice. Moreover, respondents feel that advertisement is ‘Informative’ Weighted average measure for “The Advertisement Message Understandablity“is 4.9 which means respondents strongly agree that message the advertisement is clearly understandable.

Based on the above findings it is concluded that cherrytech’s ‘Mega Super Plan’ print advertisement is effective. APPENDIX :

Primary References Barwise, Patrick (1999), Advertising in a Recession, NTC Publications. Biel, Alex and Stephen King (1985), “Advertising During a Recession,” in Advertising in a Recession, edited by Patrick Barwise (1990), NTC Publications. Deleersnyder, Barbara, Marnik G. Dekimpe, Jan-Benedict E. M. Steenkamp and Peter Leeflang (2008), “The Role of National Culture in Advertising’s Sensitivity to Business Cycles: An Investigation Across Al Continents,” Working Paper, Erasmus Research Institute of Management, Erasmus, Rotterdam. Direct Marketing, (1991), “Advertising During a Recession,” September. Frankenberger, Kristina D. and Roger C. Graham (2003), “Should Firms Increase Advertising Expenditures During Recessions,” Marketing Science Institute, Working Paper. No. 03- 003. Kamber, Thomas (2002), “The Brand Manager’s Dilemma: Understanding How Advertising Expenditures Affect Sales Growth During a Recession.” Journal of Brand Management, London Vol 10 Iss. 2, Nov, pg 106 -121. Kijewski, Valerie (1982), “Media Advertising When Your Market is in a Recession.” Cahners Advertising Research Report, Strategic Planning Institute. Lamey, Lien, B. Deleersnyder, Marnik G. Dekimpe and Jan Benedict E. M. Steenkamp (2008), “How To Mitigate Private-Label Success in Recessions? A Cross Category Investigation,” Working Paper, Catholic University of Leuven, Department of Marketing and Organization Studies. Lamey, Lien, Barbara A STUDY TO MEASURE THE ADVERTISEMENT EFFECTIVENESS IN CHERRYTECH, CHENNAI INTERVIEW SCJEDULE

Respondent No: _____

1. Age: [a] Below 19 ( ) [b] 20-40 ( ) [c] 41-50 ( ) [d] Above 50 ( )

2. Educational Qualification: [a] Primary ( ) [b] Secondary ( ) [c] Higher Secondary ( ) [d] Under Graduate ( ) [e] Post Graduate ( ) [f] Illiterate ( )

3. Occupation: [a] Business ( ) [b] Government Employee ( ) [c] Private Employee ( ) [d] House Wife ( ) [e] Student ( ) [f] Professional ( ) Profession? [Doctor/Lawyer/Engineer/Auditor]

4. Monthly Household income:

[a] Less than Rs. 15000 ( ) [b] Between Rs. 15001- Rs. 25,000 ( ) [c] Between Rs. 25,001- Rs. 50,000 ( ) [d] Above Rs. 50000 ( )

5. Marital status: [a] Single ( ) [b] Married ( ) [c] Widow ( )

6. Please specify number of children you have: [a] 1 – 2 ( ) [b] 2 – 3 ( ) [c] More than 3 ( )

7. Family structure: [a] Joint Family System ( ) [b] Nuclear Family System ( )

8. How well do you remember this advertisement? a. Don’t remember at all

b. Remember company but not product or ad

c. Remember company & the ad

9. After watching the advertisement, tell me how strongly you think it will motivate people like you to purchase the product. Rate the motivating power of the ad on 5-point scale where ‘1’ means “NOT AT ALL MOTIVATING’, ‘5’ means “EXTREMELY MOTIVATING”, for this type of product advertising.

The Motivating 1 2 3 4 5 power of Advertisement

10.If you have rated high (4 or 5) for the above question, why did you rate the ad high? In other words why do you think it will motivate people like you to purchase the product?

11.Other than trying to get you to buy the product, what is main message of this ad?

12.What did you like most about this ad? Please be specific.

13.Pick out the concept or feeling you think is most closely associated with the ad? 1. Achievement and success. 2. Living an active and full life. 3. Making smart choices 14.How would you describe this ad to a friend, would you say this ad as (Please tick any one option)

Attention – Informative Pleasant getting

Boring Warm & Offensive Welcoming

Cheerful Honest Natural

Creative Genuine/sincere Memorable

Satisfying Strong Unique

Emotional Energetic Irritating

15. Please give you opinion on the advertisement:

S.No Opinion Statements Stron Somew Neither Somewh Strongl gly hat Agree at y Agre Agree nor Disagree Disagr e Disagree ee

01 The ad message is understandable.

02 The advertisement is believable

03 The ad’s massage is relevant to me

04 The benefits described in the ad are attractive to me. 05 After viewing this ad, I, would consider purchasing the product.

BIBLIOGRAPHY

BOOKS

1) George E. Belch and Michael A. Advertising and Promotion Reprint 2004 Tata Mc Graw Hill Publishing Company Limited New Delhi Tata Mc Graw Hill Edition 2003

2) David A. Aaker University of California David A. Aaker University of California 4TH Edition Prentice -Hall of India Private Limited New Delhi 1996 3) Philip Kotler Marketing Management Pearson Education Private Limited New Delhi 2004.

4) R.S.N. Pillai & Bagavathi Modern Marketing S.Chand and Company Ltd New Delhi 2008.

5) L.P.Guptha Advertising and Sales Promotion S.Chand and Company Ltd New Delhi 2004.

MAGAZINES AND JOURNALS

1) The Hindu Survey of Indian Industries, Mobile Telephony, Manoj kohli, November-2008

2) Voice and Data, Vital Statistics on GSM, Gagan Deep Kaur, November-2008

3) Electronics for you,Brand or Banned, Sudeshna Das, April -2009

4) Vikalpa, Managing the Customer Perceived Service Quality for Cellular Mobile Telephony, Anitha Seth, K inomaya and H.M Gupta January-March- 2008

5) Indian Journal of Marketing , Determination of Potential for Customer Satisfaction and Dissatisfaction in Mobile Hand Sets using Kano Model,Dr.Hari Govind Mishra, Chetna Mahajan, November-2008

WEBSITES

1) www.trai.gov.in

2) www.cherrytech.co.in